Commodities

Chana dips on profit booking but prospects bright

Our Correspondent Indore | Updated on July 17, 2012 Published on July 17, 2012

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Chana, which had touched a new high on Monday with its prices going as high as Rs 5,050 a quintal, declined to Rs 4950 a quintal on Tuesday. This was caused by profit booking at the higher rate.

Chana (desi) on the other hand ruled at Rs 4,800 a quintal. With the monsoon turning weak over Madhya Pradesh and elsewhere in the country, depleting stock of domestic chana have made stockists go on buying spree, anticipating a further rise in chana prices. The higher price of imported Australian chana at the Mumbai port, which was quoted at Rs 5,100 a quintal, also added to the bullish trend in chana.

However, notwithstanding marginal decline on Tuesday, chana (kanta) prices in the past fortnight have gone up by almost Rs 400 a quintal and it is bound to reach a new high in the coming days, amid report of almost 33 per cent area of the country facing the threat of drought in the wake of scarce rainfall.

With lower crop output this year and a steep decline in carryover stock, chana prices in the local mandis are expected to go as high as Rs 5,500 a quintal in the coming days, a good six months before new chana crop reaches mandis, said chana trader, Mr Sanjay Bansal.

Compared to last year, chana prices have risen by over 65 per cent this year. As against Rs 2,680 a quintal last year, chana prices this year have already crossed Rs 5,000 a quintal and going by the existing scenario, it is bound to go higher in the coming days. This will be fuelled by the heavy demand for chana ahead of the festive season next month, said another trader.

Rise in spot chana has also perked up chana dal with its prices in the past one week going up by Rs 300 a quintal. On Tuesday, chana dal (average) ruled at Rs 6,050-75 a quintal against Rs 5,700-25 a week back. Similarly chana dal (medium) ruled at Rs 6,150-75 a quintal (Rs 5,850-75 a quintal a week back), while chana dal (bold) quoted at Rs 6,350-75 ( Rs 6050-Rs 6100 a quintal a week back).

Improved buying support for both in the domestic and export market has also pushed up dollar chana in the past couple of days by about Rs 400 a quintal. In local mandis, dollar chana on Tuesday ruled at Rs 7,400-8000 a quintal (up Rs 200). Similarly, in the container, dollar chana in the past one week has gone up by Rs 100 a quintal with price of dollar chana (42/44 count) being quoted at Rs 8,450 a quintal, 44/46 count at Rs 8,350, while dollar chana (46/48 count) ruled at Rs 8,250 and 58/60 count ruled at Rs 7,400 a quintal. Arrival of dollar chana remained weak at 600-700 bags.

Published on July 17, 2012
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