Chana may zoom to Rs 6,000/quintal on festive demand

Our Correspondent Updated - July 24, 2012 at 08:14 PM.

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The chana rally ended today on slack buying support even as arrival remained negligible. In the spot, chana (kanta) on Tuesday ruled at Rs 5,075-5,100 a quintal, while chana (desi) ruled at Rs 5,000. Chana (kanta,) on Monday, in the local mandis, had gone as high as Rs 5,150 a quintal on slack arrival and robust buying support from the millers but later in the evening with decline in futures and profit booking at the higher rate, it slipped to Rs 5,100. Though fresh bout of rains have given new lease of life to the standing crop, bearish sentiment in chana appears unlikely. With steep decline in domestic stock and delay in arrival of the next crop, chana may witness a rally in the coming days, more so due to rise in demand during the festive season beginning next month, said Mr Sanjay Bansal, a wholesale trader adding that before the arrival of next crop in October, chana prices in the coming days may soar to Rs 6,000 a quintal and even more.

Besides weak domestic cues, higher price of imported Australian chana also added to the bullish sentiment . With steep rise in spot chana, chana dal in the past one week has also risen by about Rs 200 a quintal with prices of chana dal (average) in the local mandis being quoted at Rs 6,200-25, chana dal (medium) at Rs 6,300-25, while chana dal (bold) ruled at Rs 6,500-25. Improved buying support both in the domestic and export markets has also pushed up dollar chana in the past week by about Rs 500 a quintal. In local mandis, dollar chana on Tuesday ruled at Rs 7,800-8500 a quintal. In the container dollar chana (42/44 count) was at Rs 9,400 a quintal, 44/46 count at Rs 9,200, while 58/60 count ruled at Rs 8,200.

Arrival of dollar chana remained weak with merely 300 bags being offloaded in local mandis. If traders are to be believed, future of dollar chana appears to be bullish given rise in demand and decline in stock.

Published on July 24, 2012 14:44