Hot Commodities: Chana Soars, Futures Rally More Than A Percent

Weak Pulses acreage in the ongoing Kharif season clubbed with good buying in retail markets is supporting Chana futures. The NCDEX Chana futures for July had tested a one and half week low of Rs 3380 per quintal this week and currently trade at Rs 3468 per quintal, up 1.31% on the day. Futures have been witnessing some short covering in last few days and similar trend was seen today as well with the open interest in the counter sliding by nearly 1.90% so far. The supplies in Delhi market have been sluggish over last few weeks and are unlikely to pick up much in coming weeks.

Domestic Pulses acreage has dropped to 0.6 million hectare from 0.8 million hectare in the corresponding period last year, according to latest data released by agriculture ministry. The overall trend in Kharif sowing is tepid after an initially strong response from growers. Latest data places sowing area at 11.6 million hectare as of June 22 against 12.84 million hectare in the corresponding period of previous year. India received 10% lower than normal rainfall during June 1-22, taking a toll on the sowing.