Spot prices in north India moved up marginally by Rs 15-20 a quintal this week mainly on some spot buying but fresh arrivals along with dull demand in the spot markets had been causing a price decline in recent months. November 2007 contracts on NCDEX were ruling lower at Rs 2,290 per quintal on some selling pressure while January 2008 contracts were quoted at Rs 2,177 per quintal on Wednesday.
Lacklustre demand coupled with regular inflow of yellow peas in the market is adding to the downward pressure into the markets, Akshita Bhatt, Kotak Commodity Services said. About 48,000 tonnes of Canadian yellow peas landed at Indian ports last week. Two more vessels of yellow peas are in the pipeline and will add further pressure on spot prices, a local trader said.
October 2007 contract is trading at a discount of Rs 43 from Delhi spot prices. As expected, chana futures have marginally gained to weaken the basis further and the trend is likely to continue in the short term, Debjyoti Chatterjee, Mape ADMISI Commodity Reseach said.
Trading volumes in chana have declined sharply, since January 2007. Pulses were largest contributors to volumes in NCDEX in the last two years.
Trading volume on NCDEX has declined sharply by almost 50% at 3.11 lakh tonnes in August 2007 as against 5.97 lakh tonnes recorded in January 2007. The government announced ban of futures trading in urad and tur on January 21, 2007, but left chana from this list.