Weak arrivals, monsoon may boost chana

Weakening arrivals and the southwest monsoon may further catapult the near-month chana futures.

It has touched Rs 2,203 a quintal compared to last week's close of Rs 2,169 on the National Commodity and Derivatives Exchange (Ncdex) a rise of over 1.5 per cent.

According to market sources, demand for besan rises during the monsoons, which provides support to chana rates.

The last couple of days have witnessed a slight improvement in demand in the physical market.

However, commodity analysts said the market lacks momentum in demand. "Unless the momentum comes, rise in prices would not continue for a long time," they said.

Spot rates in Latur on Thursday ranged from Rs 2,150 to Rs 2,200. Traders said there were no buyers, but added that they expect some jump in the market. Latur reported an arrival of 400 tonnes of chana today.

On the futures front, heavy resistance is being seen at the levels of Rs 2,218 a quintal. "If the market crosses this level, only then we will see it go up further till Rs 2,250 a quintal," said an analyst with Kotak Commodity.