Chana futures extend losses, tracking spot market

Extending losses for the second straight day, chana prices tumbled 2.38 per cent to Rs 4,931 per quintal in futures trade today as speculators reduced positions amid increased arrivals in the market after the government took steps to curb soaring prices.
At National Commodity and Derivative Exchange, chana for delivery in October month plunged by Rs 120, or 2.38 per cent to Rs 4,931 per quintal with an open interest of 80 lots.
Similarly, the commodity for delivery in November contracts traded lower by Rs 60, or 1.18 per cent to Rs 5,032 per quintal in 61,530 lots.
Marketmen attributed further fall in chana futures to a weak trend at the spot markets where chana and other pulses came under pressure due to improved supplies in the market after the government announced measures, including intensifying anti-hoarding operations, to curb soaring pulses prices.

Furthermore, imposing stock limits on pulses held by licenced food processors, importers, exporters as well as large departmental retailers, too weighed.
Meanwhile, with pulses soaring to as high as Rs 200 per kg mark in the retail markets, the government yesterday decided to further import 2,000 tonnes of tur dal and 1,000 tonnes of urad dal, for which the tender will be floated by MMTC on an immediate basis.
At the retailers market in the national capital, prices of arhar, moong and urad came under pressure and were down by up to Rs 25 per kg after prices of select pulses drifted at the wholesale market.