Bullish futures boost spot chana

| | Updated on: Jan 12, 2011
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Chana, sluggish for the past few days following weak demand in the physical market, bounced back on Wednesday on the back of rise in futures and improved domestic demand. Riding high on bullish futures where chana's January and February contracts edged higher at Rs 2,579 a quintal (Rs 30 up) and Rs 2,603 a quintal, chana spot prices on Wednesday perked up by Rs 50 at Rs 2,415 a quintal.

According to a chana trader, positive correction in chana was being expected, considering sluggishness in its demand in the past few days. The millers and retailers who had temporarily withdrew themselves from the market, have shown renewed interest in chana. He added that the rise in chana futures - which primarily behaves on the whims of the speculators - and delay in arrival of new crop in Maharashtra, has also spurred chana prices in the spot as traders from Maharashtra have started trading in chana from Indore mandis in large numbers.

On the other hand, dollar chana or chickpea which also had been witnessing a downtrend because of the weak demand and poor quality issue, gained Rs 100 on Wednesday on improved domestic demand. In the spot it was quoted at Rs 5,000-Rs 5,200 a quintal. Similarly container quality dollar chana (42/44 count) also gained Rs 100 at Rs 5,600 a quintal.

Published on January 12, 2011

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