Chana looking strong

COMMODITY SPIKES

Chana futures, both in the physical and futures market, firmed up during the last week.

Analysts said till the expiry of the near-month contract, futures will remain firm whereas rates in mandis should stabilise at present levels.

The physical market rates in Delhi rose to Rs 2,568 a quintal from Rs 2,338 a quintal, up 10 per cent. In Latur, it closed the week around Rs 2,200, up over 7 per cent. The futures galloped on the National Commodity and Derivatives Exchange (Ncdex) by 8.25 per cent and closed the week at Rs 2,415 a quintal, up Rs 184.

Market sources said that chances of delivery for the near month contract is less and traders with long-term positions are holding their stocks. Apart from it, stocks in warehouses also reported to be less.

According to Latur-based traders, demand is still lull in the market. "Despite slipping to levels of Rs 2,100 a quintal, demand seems bearish. We expect chana market to remain bearish next week as well," said a trader. Country is expecting a crop output of 55 lakh tonne this season.

Arrival has already started and will pick momentum by the end of this month.