Chana seen range-bound

MUMBAI: Benchmark January chana futures slipped on Monday on estimates of higher output, but higher government support prices and hopes of a pick-up in local demand restricted the fall, analysts said.

Chana futures are expected to trade range-bound on Tuesday, they said.

“Movement in chana futures is sideways. But prices are likely to gain in coming days due to depleting stocks,” said An uj Agarwal, analyst at Nirmal Bang. Demand for chana tends to go up during wedding season. Agarwal expects the January contract to touch Rs 2,625-2,650 per 100 kg in the long term.

India has raised MSP of chana by 19.3% to Rs 2,100 per 100 kg and that of rapeseed by 1.06% to Rs 1,850 per 100 kg. In Indore, a major trading centre in Madhya Pradesh, chana fell Rs 12 to end at Rs 2,342/ 100 kg. Total acreage in 2010/11 is likely to rise by 15-20% due to abundant soil moisture and higher government support price, which is encouraging farmers to increase area under cultivation.