The Hindu Business Line : Pulses futures get fresh life

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Kolkata/Mumbai Jan. 22 Demand in the physical market and expectations of supply constraint infused fresh life to pulses futures on Monday.

Witnessed limited activity last few weeks, pulses counter became active late last week.

On Monday, near contracts of urad (desi) and chana closed on upper ceiling on Monday. In fact, both February and March contracts of urad closed at double upper freeze at six per cent. Chana gained close to 2 per cent closing at Rs 2,250 and Rs 2,258 per quintal respectively on NCDEX (February contract).

Chana spot prices as polled by NCDEX were at Rs 2,472 per quintal.

Tur ends higher

Tur, which had also witnessed high volatility during the day with prices moving over 3.5 per cent, finally closed at over 2.5 per cent higher than the previous day's closing. Tur gained over 4 per cent at Rs 2,247 per quintal.

International prices of tur and channa were higher at $530-535 and $700-730 respectively.

According to analysts, movement in these counters extended technical support to guar seed irrespective of much change in fundamentals.

"Buying support from Madhya Pradesh and paucity of stocks in Delhi pushed up chana prices. While crop outlook is normal at 54-55 lakh tonnes so far. However, for the final crop outlook we have to wait for 2-3 weeks more," said an analyst with Kotak CSL Research.

Support to urad

Southern States are providing buying support to urad. As the new crop (from Andhra Pradesh) is expected in March, there is supply constraint too on this counter. The crop outlook so far is normal and production is expected to hover within 2.5-3 lakh tonnes.

"Both chana and urad are expected to witness upward movement during next 2-3 weeks. Though there will be intermittent corrections due to profit taking, prices are expected to remain on the upside," Kotak feels.

News of a lower crop in Myanmar supported the prices of pulses, said Mr Saikanna, Assistant Vice President of Kotak Commodities Services Ltd.

The bull run is likely to be much short-lived in tur, which is witnessing new arrivals from Maharashtra.

While the counter may witness upward movements during next few days due to strong physical market buy in Maharashtra and Karnataka, fresh supplies may bring down prices in the futures markets sooner than later.

Sugar continued to rule sluggish on projections of a bumper crop. Sugar prices for the near term contract closed at Rs 1,611 per quintal on the futures exchanges and at Rs 1,657.35 per quintal in the spot markets.

In the spices segment, pepper gained on low production estimates and higher exports demand of 4,000-5,000 tonnes for the current month, said Mr Saikanna.

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