Chana futures: Positive trend to continue

Chana futures on the National Commodity and Derivatives Exchange (NCDEX) rallied from a weekly low of ₹4,706 per quintal to a high of ₹5,099 per quintal, registering a gain of 8.35 per cent. The contract had surged 7.82 per cent in the previous week.

The Centre’s removal of restrictions on exports of all pulses to improve the price condition favoured the price rally in chana. Supply shortages due to off season across major producing centres also rendered support to the prices. However, towards the end of the week, the market pared some of the gains on account of profit booking.

Chana (rabi) sowing is progressing in full swing and, according to the latest November sowing data available, Indian farmers have planted chana in 72.96 lakh hectares against 62.83 lakh hectares over the same period last year, 84 per cent of the five-year average. Madhya Pradesh has increased planting by 40 per cent year-on-year, while Rajasthan decreased it by 24 per cent .

Going ahead, the positive trend in chana futures is likely to continue on bullish fundamental factors. However, we may see some correction at the beginning of the week on account of profit booking. Hence, buying on dips is recommended for the coming week.

The writer is Head-Commodity Research, Karvy Comtrade