The most volatile commodities on the National Commodity & Derivative Exchange Ltd are oilseeds, edible oil, chana, and spices. Let’s understand the movement in chana, the factors which could derive the trend going ahead. On Futures, chana since the beginning of the month has moved in a range of 5050-5300 rupees. As it is nearing the key support levels, factors such as arrivals in the market, government procurement, policies, revival in demand could determine the trend going ahead.
NAFED as on June 12 procured 275,797 ton chana. Improved demand from dal millers as states unlock and open up the economy and give more relaxation could support prices. Meanwhile, as the government extends its procurement till the end of June in some states, it could also push prices higher. However, any government policy such as strict disclosure of inventories held by millers, importers and traders or a cut in import duty could act as a dampener.
NCDEX July Futures could find good support at 5050-5025 and may face resistance at 5380 levels. (CMP: 5171)