Chana

Chana prices fell in Delhi tracking weakness in futures contracts on NCDEX and expectations of higher sowing of the pulse this season. Chana November futures on NCDEX hit the 3% lower circuit.

Prices of gram drifted lower at the wholesale pulses market today on subdued demand from retailers. However, masoor and its dal edged up on scattered enquiries. Muted demand from retailers against adequate stocks position mainly led to decline in gram and arhar prices.

Delhi chana rate down tailing NCDEX, high crop view.

India gram fall on sluggish demand from retailers.

Prices of tur in Mumbai and Kalaburagi were down because of weak demand from millers and expectations of a near-record crop in 2017-18.

Prices of chana in Delhi were slightly up because of a recovery in demand. However, chana futures on the NCDEX were down because of expectations of rise in the acreage this season amid less than expected demand for the pulse in the festive season. The most active October futures were down 0.4%.

Dal millers across the country have requested the government to allow exports of chana, masoor and moth pulses as prices have slumped below the minimum support levels due to higher production. India had produced about 26-27 million tonne pulses in 2016-17 and imported 5.7 million tonne. The country consumes about 25-26 million tonne of pulses in a year. Currently, masoor is ruling below the minimum support price of 3,950 rupees. Prices are also hovering at lower levels as various government agencies that had procured 1.5-1.8 million tonne of pulses are now offloading their stocks in the market.

IMD Agrimet division has advised farmers in Malwa region of Madhya Pradesh to sow chana immediately after harvesting soybean as there is enough residual moisture in soil. The state Agrimet division has also asked farmers in Satpura region to harvest matured soybean and groundnut as the dry weather is seen in the next two days.

The government, which recently imposed quantitative limits on imports of tur, moong and urad, has no plans as of now to restrict imports of chana and masur. Prices of chana and masur are increasing in the domestic markets, and restrictions on imports may push up the prices further.

Production of all rabi crops in Rajasthan, barring chana and barley, is seen lower this year. Among pulses, the state aims around 3% higher chana output at 1.43 million tonne. Rajasthan is the third largest producer of chana in the country.

NCDEX chana down on likely rise in sowing this year.

Futures contracts of chana down on the NCDEX due to expectations that sowing of the pulse is likely to increase this year. Recent rains in the key growing areas of Madhya Pradesh, Rajasthan, Maharashtra, and Karnataka have raised hopes of higher sowing of the pulse this season due to adequate soil moisture and higher rates as compared to other commodities such as wheat and mustard. Arrivals of chana in Delhi pegged unchanged at 600 tn .

The National Commodity and Derivatives Exchange modified the contract specification for chana contracts and excluded Ganj Basoda in Madhya Pradesh as an additional delivery centre.

Futures contracts of chana were down on the NCDEX as prices fell in the spot market. The most active October contract was down 2.5%. However, prices are unlikely to fall further due to expectations of rise in the demand in the coming days ahead of festivals.

Prices of chana were down in Delhi due to sluggish demand from dal millers. There have been lower purchases by dal millers because the prices are at higher levels and there are views that they have procured good quantity a month ago. On the NCDEX, the most-active October contract was down 1.3% at 5,955 rupees per 100 kg from previous close.

Futures contracts of chana fell on the NCDEX due to a rise in stocks in exchange-accredited warehouses. The most active October contract was down 0.6%. Prices of chana, however, were steady in spot markets as supply was sufficient to meet demand.

Supply of wheat seed, chana seed and mustard seed is seen in sufficient quantity for upcoming rabi sowing season. The country currently has stock of chana seed is at 192,600 tonne, 21,000 tonne more than required. Govt have Lentil seed 100 tonne short of requirement for rabi sowing. Around 13,600 tonne of lentil seeds is currently available in the country for sowing.

Prices of chana were steady in Delhi as supply was sufficient to meet demand. In Bikaner, prices of chana were also steady while arrivals were pegged unchanged at 300 bags (1bag=100 kg).

Agriculture and Agri-Food Canada has scaled up its estimate for prices of chana or chickpea in Canada in 2017-18 (Aug-Jul) by 4% to an average of $1,000-$1,030 a tonne, as supply is seen declining due to lower carryover stocks and imports. The agency scaled down its forecast for chana production in Canada in 2017-18 by 22% to 81,000 compared to its estimate in August. The outlook for production of peas in 2017-18 was scaled down by 5% to 3.79 million tonne because of a sharp decline in yields and a small fall in the harvested area. The agency kept its 2017-18 average price forecast for peas unchanged at $280-$310 per tonne due to lower supply and higher carryover stocks. Exports are seen falling 9% from the previous forecast to 2.9 million tonne, with India, China and Bangladesh continuing to be Canada’s top markets. Average prices of masur for the year ending July are seen unchanged at $720-$750 per tonne compared to the previous estimate, owing to high carryover stocks.

Prices of chana fell in Delhi due to a decline in demand from dal millers and a rise in arrivals. On the NCDEX, the most-active October contract traded down 2.4% from previous close. Gram and tur declined sharply in Nagpur on poor buying support from local millers amid increased arrival from producing belts.