Chana up 1% on strong demand

Chana futures rose further by Rs 39 to Rs 3,930 per quintal today, as speculators enlarged their positions on strong spot demand.

Unfavourable weather in key growing areas, which could trim output, although profit-taking and arrival pressure from the new season crop could limit the gains.

At the National Commodity Derivatives Exchange, April chana rose by Rs 39, or one%, to Rs 3,930 per quintal, with an open interest of 95,750 lots.

The May delivery gained Rs 35, or 0.87%, to Rs 4,054 per quintal, with an open interest of 21,0210 lots.

Analysts said increased buying by speculators on strong demand in the spot market mainly led to the rise in chana prices in futures trade.

They said good demand from millers and wholesale dealers and on fall in output this year, which outweighed arrival pressure in spot markets.