Chana, tur to remain firm

Bearish trend stokes urad, moong on rise in acreage.

The pulses market is expected to move in opposite directions over the next fortnight. On the back of continuing demand pressure, chana and tur will remain firm, whereas urad and moong will witness a bearish trend as acreage increases.

Rates of chana and tur have already climbed up Rs 25-50 a quintal last week. Urad, however, slipped to Rs 2,500 from Rs 2,600 whereas moong is range-bound. Market sources said the trend will continue until prices stabilise.

Spot price of chana has touched Rs 2,400 in Delhi, which a week ago was below Rs 2,350. Demand, mainly from the south, is pushing the chana market up. Similarly, tur scaled up to Rs 2,551 from Rs 2,520 a quintal during the same period. The rates are rising due to persistent arrival constraints and slower sowing.

"At all trading centres, demand for chana is picking up. Millers are now going for more buys as festival season is approaching after a month," said Akshita Bhatt, an analyst with Kotak Commodities. She added that the August contract was witnessing buying at every level.

According to Biswarup Lahiri, analyst with Agriwatch Commodity, "The off-season demand, which will persist for another two weeks, is stoking firmness in the market."

Urad market is showing signs of dampness on account of a good monsoon and an anticipated increase in acreage. During this period last year, the market was trading at Rs 4,000-4,200 a quintal. Market sources said that in Maharashtra, farmers may opt for urad instead of cotton. In Madhya Pradesh too, a rise in acreage is expected.

Masoor too was range-bound and in Indore the spot rates hovered around Rs 2,750 a quintal. Moong is expected to see weak sentiments as its acreage too is likely to go up. Tur will be harvested in January followed by urad and chana (February).

On the National Commodity and Derivatives Exchange (Ncdex), the near month contract for chana closed at Rs 2,371, up 1.28 per cent, from Rs 2,341 a week ago.