Commodity spikes

Chana may slip on arrivals: Low demand and new arrivals are expected to infuse slight bearish trend in the chana futures and spot markets next week. With the Centre asking the state governments to put stock limits in the pulses market, analysts believe it will help contain speculations.This week saw an increase of around Rs 92 a quintal in the chana futures for April delivery. "The following week could see a drop and the market will remain range bound," said an analyst. In Latur market, the arrival rate is in the range of 7000-8000 bags (each of 100 kg). "Spot market saw the low of Rs 2,000 a quintal and high of Rs 2,200 a quintal this week. However, prices may slip," said Sanjay Darak, a Latur-based trader. He added the prices might drop to Rs 2,000-2,100 a quintal. At present, the spot prices are quoting at Rs 2,150 a quintal. The April chana contract on the National Commodity and Derivatives Exchange (NCDEX) closed at Rs 2,136 a quintal.

Jeera on a short bear ride: Despite having an overall bullish trend in the jeera market owing to low production estimates this year, the March-end period may see a short-term bearish trend. Though informed market sources could not say how much would be the decline, they said as the arrival gains momentum, it would pull down the prices for a short period.This year the country is expecting an estimate of 15 lakh bags (each of 35 kg) of jeera compared with 20-22 lakh bags last year. However, the rains during the recent past is reported to have further damaged the crop. At present, around 30 per cent of the crop is yet to be harvested. At the same time, stocks in Syria and Iraq are almost exhausted. Sowing will start there by April and further production will depend on the kind of sowing. The April jeera contract on NCDEX closed at Rs 12,031 a quintal, down 1.52 per cent from Monday's close of Rs 12,217 a quintal. Guarseed depends solely on monsoon, and any good or bad climatic news may change the fortune of this cattlefeed overnight. But, no fundamentals support the price rise as of now, the trader said.