Chana fails to shake off downtrend at NCDEX futures
Chana prices have been falling continuously for the past one week. The NCDEX chana contract opened steady on Friday but witnessed downtrend of prices in the day.
By TNN |
NEW DELHI: Chana prices have been falling continuously for the past one week. The NCDEX chana contract opened steady on Friday but witnessed downtrend of prices in the day.
Long liquidation was witnessed in all the contracts amid lower volumes suggesting that the markets seem to be weakening. Volumes picked up later on Friday when fresh short positions were created in the NCDEX January contract.
The far months are in deep backwardation as the markets expect the new crop arrivals to begin by February. No demand from the physical markets weighed heavily on the markets. Spot rate in Delhi declined by almost Rs 61 per quintal from Thursday.
The tur NCDEX contract witnessed lacklustre day of trade. Fresh short positions were created in January and February contracts. Spot rate for desi tur was Rs 1,832 per quintal.
The far month contracts have entered in to contango as the arrivals would begin by December end. New desi tur weakened by Rs 30-35 per quintal on account of lack of demand in Latur and Gulbarga mandis.
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The urad markets opened weak and traded downwards in the day. All the contracts closed down by almost 4%. Fresh short positions were created in NCDEX January contract amid good volumes suggesting that the traders were convinced by the market movement. Lacklustre demand from millers pushed the markets downward in spot rates as well as the futures market.
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