Chana up 4%, hits upper limit on lower output concerns

Traders enlarge positions, as unseasonal rains in key growing belts put a question mark on output

Chana prices surged by Rs 168, or 4 per cent to hit upper circuit at Rs 4,372 per quintal in futures trade today as participants enlarged speculative positions, driven by lower output concerns due to unseasonal rains in key growing belts.

Also, pick-up in demand in the spot market supported the upside.

At the National Commodity and Derivatives Exchange, chana for delivery in May climbed Rs 168, or 4 per cent to Rs 4,372 per quintal with an open interest of 89,740 lots.

Likewise, the commodity for delivery in June traded higher by Rs 170, or 3.99 per cent to Rs 4,435 per quintal in 99,070 lots.

Analysts attributed the sharp rise in chana futures to reports of likely lower output due to unseasonal rains in key producing areas.