The Hindu Business Line : Chana prices seen ruling weak in near future

According to Angel Commodities, huge arrivals of moong in Rajasthan have pressured farmers to liquidate their chana stocks, leading to increased availability. Also, global chickpea production is projected to be higher at 2.16 lakh tonnes against 1.63 lakh tonnes last year. Besides, the crop in Tanzania and Australia is reportedly good. As India depends on these countries for its imports, chana prices are expected to be under pressure.

“Near term availability of chana is expected to be satisfactory,” said Angel’s senior research analyst, Mr Harmit Virvadia.

Last week, NCDEX September contract, which continued to be bearish, moved in the Rs 2,212-2,321 a quintal range. On Saturday, the contract closed at Rs 2,239, while October contract ended at Rs 2,271. On MCX, September contract ended at Rs 2,245 and October at Rs 2,272.

According to Kotak Commodity Services Ltd, demand in the physical markets is seen to be very weak. Despite the upcoming festive season, poor offtake from the millers is weighing heavily on the markets. Stocks in NCDEX warehouses have been witnessing a declining trend for past 10 days and this may be another factor to add bearish sentiment into the markets, it said.

Soyabean oil

Refined soyabean oil prices are expected to recover this week on festival demand and better trend in overseas market. In the global market, soya oil prices are ruling firm on Chicago Board of Trade owing to dry and hot weather in the US, which is not favourable for soyabean crop. Soyabean yield is expected to fall slightly in the US due to hot and dry weather, according to Angel Broking. Kotak said the medium term outlook was bearish in view of the bumper oilseed production hopes. It also saw gains for investors who go short with a target of Rs 472.

Last week, NCDEX September refined soya oil futures declined by 1.35 per cent mainly on hopes of a better domestic oilseed production. On Saturday, refined soya oil for September delivery ended at Rs 480 for 10 kg and for October at Rs 479.

Mentha Oil

Persistent overseas demand is likely to a positive factor for mentha oil in the medium term, while in the short term prices would be driven by the quantity of arrivals, Angel Broking said.

Arrivals in Uttar Pradesh were around 700 drums a day. Last week, there was lack of demand from exporters and local manufacturers, as they held ample stocks and awaited further fall in prices. As a result, the sentiments in domestic and futures markets were mixed. On Saturday, Mentha oil September contracts closed at Rs 519 a kg, October ended at Rs 530.