Chana remains higher on increased demand, limited arrivals

Prises soared despite a 20% special margin imposed on long positions

Chana prices rose by Rs 50 to Rs 4,338 per quintal in futures trade today as speculators indulged in creating fresh position even as the authorities imposed 20% special margin on long positions.

Sentiment remained firm following reports that chana production in the current crop this season likely to decline due to adversed weather conditions, traders said.

They said despite decision to impose special 20% margins on long deals to check unwanted speculation, the trading sentiment remains strong.

At the National Commodity Derivatives Exchange, chana for June delivery rose by Rs 50, or 1.17%, to Rs 4,338 per quintal, with an open interest of 1,03,140 lots.

Similarly, the commodity for delivery in May increased by Rs 35, or 0.84%, to Rs 4,215 per quintal, with an open interest of 18,760 lots.