Chana looks bullish

COMMODITY SPIKES

Though chana contract for February delivery saw a range-bound movement in the last week, the following week can see bullish trend with demand expected to rise ahead of the marriage season.

The futures market is in heavy discounts in comparison to the prevailing spot prices in the markets of Delhi and Indore.

At present, chana is quoted between Rs 2,450 and Rs 2,500 in Delhi, whereas in Indore, it is at Rs 2,400 a quintal. On the contrary, futures are hovering around Rs 2,230-2,250 a quintal.

Commodity analyst maintained that spots were more unlikely to decline as demand was slowly picking up. Interestingly, in December, sluggish demand made futures as well as the spots to fall.

The country's estimated production this year is 54-55 lakh tonne, which is a normal crop. Moreover, Australian crop has also started arriving. therefore, the coming 2-3 weeks are crucial for ascertaining the actual yeild of the crop.

On Saturday, chana February futures closed at Rs 2,257 a quintal, where as spot was reported to be at Rs 2,472 a quintal in Delhi market.