| Date: |
12-12-2011 |
| Subject: |
India Chana to Edge higher on Removal of Special Margin |
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MUMBAI (Commodity Online): Chana traded with high volatility last week with the prices unable to find a clear direction. Withdrawal of special margin of 10% on the Buy side in Chana contracts could have a moderate Bullish impact on the market prices.
Discussions on price rise in the Parliament however pressurize the market sentiments to some extent.
Higher sowing figures in domestic/International markets have kept pressure on the prices. Better sowing activities reports from Rajasthan, MP and Maharashtra have been reported. Better production prospect for chana is expected for next year.
Latest reports from Australia indicates a rise in production there by 15000 tonnes to 3.94 lakh tonnes in 2011-12.
Raising MSP of Rabi crop (Gram by 33% to Rs 2800/Q from Rs 2100/Q) could support Chana rates in medium term
As per latest data from Ministry of Agriculture—as on 2nd Dec, 2011 the sown area under Chana (Gram) crop is up by 2.03 lakh hectares at 75.95 lakh ha vs same period last year.
1st Advance Govt estimates of a fall in Pulses production to 6.43 million tonnes vs last estimates of 7.12 million tonnes could support short to medium term rates for Chana.
The other major producers for Pulses namely Myanmar, Australia and Canada are likely to report a fall in Pulses production due to adverse weather. The Indian imports are likely to get costlier in coming months which could support Chana rates.
Shifting to other more lucrative crops like Cotton and soyabean have resulted in lower acreage for chana.
Source : commodityonline.com
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