After a two-week long weakness, chana futures prices on National Commodity & Derivatives Exchange (NCDEX) have taken U-turn this week over reports of fresh buying from millers on fears that slow progress of sowing in chana growing areas might pull down the output.
NCDEX chana July 2009 futures gained Rs 45 to trade at Rs 2,174 per quintal on Tuesday over previous week as millers have increased their buying as sowing of kharif season is not progressing well, which supported the rise, an analyst said.
As on June 19, farmers have cultivated kharif pulses on 1.81 lakh hectare down around 3.8% compared to the same period last year as delayed monsoon has affected the cultivation process.
Chana futures may trade in a narrow band in the current week due to improved demand amid sufficient supplies, trade sources said.
?Firm sentiments across the pulses segment will support the prices in the coming weeks. In the medium term, prices are likely to trade in the range of Rs 2,100-2,300 per quintal (August contract). Buying on dips is advisable from the medium term perspective, analyst with Angel Commodities said.
Tur prices have surged in the past few weeks. However, the prices of the main substitute of chana like yellow peas have remained weak due to sluggish demand and huge imports.
?Demand in the spot market is expected to rise by retailers due to lesser availability of other vegetables during the wet weather. Technically, futures prices are seen in bullish tone and any retest of the support level around Rs 2,100 could renew buying potential and prices could test Rs 2,220, which is a strong resistance level and if prices remain above the given level then the future prices could rally to Rs 2,300-2, 350,? Tarun Satsangi, assistant vice president Bonanza Commodity said.