Chana

Futures contracts of chana fell on the NCDEX as investors created sell positions after prices rose to a one-week high. The most-active September contract traded down 0.3% from previous close. A decline in spot prices of the commodity also weighed on the contracts. Prices fell in Delhi because of lack of demand at higher prices.

Futures contracts of chana on the NCDEX rose over 2%, tracking a fall in arrivals along with improved demand from dal millers and stockists. On the NCDEX, the most-active September contract of chana traded up 2.37% from previous close.

Chana futures were down for the second day in a row on the NCDEX and hit the lowest level since their launch as weak demand from dal millers continued to pull down prices. The most-active September contract on the NCDEX was down 0.4%.

The pace of procurement is slow now, but could pick up if the rains take a break. The agency had started procuring the pulse last month when prices fell below the minimum support level of 4,000 rupees per 100 kg, including a bonus of 200 rupees. Procurement is being carried out in Rajasthan, Madhya Pradesh, Uttar Pradesh and Haryana. Around 42,580 tonne of the pulse has been procured in Rajasthan, 12,730 tonne in Madhya Pradesh, 967 tonne in Uttar Pradesh, and the rest in Haryana.

Chana futures on the NCDEX fell nearly 1% as demand from dal millers remained weak.

Chana prices rose by 0.35 per cent in futures trading as traders enlarged positions on the back of rising demand in the spot market. At the National Commodity and Derivatives Exchange, chana for delivery in October rose 0.35 per cent.

Prices of chana fell in Delhi because of weak demand from dal millers Chana prices were down despite the Maharashtra government removing the stock limit on it. The most active August futures on the NCDEX were down 1.8%. Rajkot Gram, Besan prices moved down due to low retail demand.

The National Agricultural Cooperative Marketing Federation has procured 54,735 tonne chana grown in the 2016-17 (Jul-Jun) rabi season for buffer as of Thursday. Pace of procurement is slowed down due to rains in key growing areas. Procurement is being carried out in Madhya Pradesh, Uttar Pradesh, Rajasthan and Haryana. The procurement started as chana in these states is trading below minimum support price level of 4,000 rupees per 100 kg, including a bonus of 200 rupees.

Prices of chana were down in Delhi because of higher supply in the local market and sluggish demand. However, traders expect prices of chana to rise in the coming weeks due to demand ahead of festivals. The most active chana September futures were down 2.7%.

The Maharashtra government has scrapped stock-holding limits on chana with immediate effect, thus removing such cap from entire pulses complex now. In June, the state had removed the stock limit on all pulses expect chana. Withdrawal of stock limits on pulses is aimed at boosting procurement by traders and stockists, which would support prices, particularly of tur which continues to sell below the minimum support price.

The September contract of chana was down 1.6% on the NCDEX, tracking a fall in benchmark markets. Prices of chana were down in Delhi and Bikaner due to lacklustre demand from domestic stockists and dal millers after the recent rise in prices.

Chana futures contracts on the NCDEX hit the 3% upper limit on improved buying by the investors after prices hit the key support level. The most active September futures contract was up 2.1% from previous close. Lower arrivals of the pulse in the local market is seen supporting upside in the chana prices.

Canada has further scaled up its 2016-17 (Aug-Jul) price estimate for chana for the third time this year, while retaining that for peas and masur. Chana or chickpeas prices for 2016-17 have been forecast higher at $990-$1,000 per tonne from $950-$960 per tonne estimated last month. The average price is forecast to increase sharply to record prices, due to lower Canadian and world stocks. However, in 2017-18, prices are likely to see a correction and are likely to be quoted in the range of $960-$990 per tonne.

Chana futures rose 1% on the NCDEX tracking the rise in major spot markets. The most active September contract on the NCDEX was up 1% from previous close. In Bikaner, a key market, chana was quoted as 5,050 rupees per 100 kg, up 50 rupees from previous close.

Chana future contracts on the NCDEX hit the 4% lower limit as arrivals of the commodity in the local market doubled while demand from dal millers was low. Expectations of demand ahead of festivals are likely to restrict sharp fall in the pulse prices.

The National Agricultural Cooperative Marketing Federation has so far procured 53,000 tonne chana and 25,000 tonne masur grown in 2016-17 (Jul-Jun) rabi season in key growing areas of the country. In Madhya Pradesh, NAFED has bought around 18,000 tonne masur from Madhya Pradesh and the rest from Uttar Pradesh. Around 41,600 tonne of chana has been procured in Rajasthan, about 10,800 tonne in Madhya Pradesh, 947 tonne in Uttar Pradesh, and the rest in Haryana. The agency has also bought around 150,000 tonne of summer grown moong, mostly from Madhya Pradesh.

On the day of relaunch of chana futures on the National Commodity & Derivatives Exchange, open interest in the commodity was at 40% of the overall volume. Total open interest in the active contracts of September and October combined were 6,990 tonne, while the total volume traded was 17,380 tonne. It added that over 180,000 farmers had registered with the exchange. The most active September contract ended up 0.5% at 5,330 rupees per 100 kg.

To start with, September, October and November contracts available for trading, and the contract size will be 10 tn. The transaction charges for trading in chana futures in line with charges for commodities in list B, which is a flat rate of 2 rupees per 100,000 rupees of trade, till further notice.

Prices of chana in Delhi rose sharply, ahead of the relaunch of futures trade of the commodity on the NCDEX on Friday. Lower arrivals amid improved demand from dal millers contributed to the uptrend.

The National Commodity and Derivatives Exchange is set to relaunch futures trade in chana on Friday, after the Securities and Exchange Board of India gave its approval in this regard. According to the new contract, Bikaner in Rajasthan would be the main delivery centre, as opposed to Delhi in the previous contract.