Chana to be in bear grip

COMMODITY SPIKES

Chana continued to reel under bearish sentiments last week. The trend is expected to be no different in the coming week. The January futures opened weak and slipped throughout the trading sessions except on Tuesday. Low demand in the market, which has persisted, was not letting the market firm up, said traders.

According to commodity analysts, chana prices are likely to trade down on the back of rising Australian imports and weak consumer demand in pulses. Analysts put the resistance at Rs 2,254 a quintal.

The country's new crop is expected to hit the market by the beginning of February. There are reports of less sowing in various regions of the country due to inadequate rainfall and because of farmers shifting to wheat cultivation.

Analysts said the country could produce around 55-56 lakh tonnes of chana this season, which could further weaken the market. Marketmen are of the view that chana, in the long term, will trade between Rs 2,000 and Rs 2,200 a quintal.

On the National Commodity and Derivatives Exchange, the January chana futures closed on Saturday at Rs 2,227 a quintal, Rs 28 lower than the previous week's close.