Chana futures hit lower circuit on weak spot demand

NEW DELHI: Chana prices tumbled by a daily lower limit of four per cent in futures trade today as traders booked profits on reports of higher production following improved rains and sluggish domestic demand.

At the National Commodity and Derivatives Exchange, chana for September delivery fell by Rs 188, or 4 per cent, to Rs 4,517 per quintal, with an open interest for 12,580 lots.

Similarly, the commodity for delivery in October also declined by Rs 183, or 3.88 per cent, to Rs 4,528 per quintal, with an open interest for 89,340 lots.

Traders said sluggish demand at prevailing higher levels against adequate stock availability mainly led to the decline in chana futures prices.

They said improved rains over Rajasthan and Madhya Pradesh, which would help kharif-sowing, also weighed on sentiment.