Chana weakens 0.8% on higher production concerns

Increased arrivals, sluggish demand influence prices

Chana prices fell by Rs 38 to Rs 4,527 per quintal in futures trade today as speculators booked profits driven by a sluggish demand.

Improved rains in the producing regions, which could lead to higher output, amid poor domestic demand influenced the market sentiment.

At the National Commodity and Derivatives Exchange, chana for September fell by Rs 38, or 0.83%, to Rs 4,527 per quintal, with an open interest of 9,230 lots.

October chana fell by Rs 33, or 0.73%, to Rs 4,460 per quintal in an open interest of 74,390 lots.

Traders said sluggish demand in the domestic market against increased arrivals from Madhya Pradesh and Rajasthan led to the fall in chana prices in the futures market.