Week Ahead: Chana prices likely to find support from mill buying

MUMBAI, Feb 4th (Commoditiescontrol): Domestic variety Chana prices traded almost unchanged at Indore during the week ending Feb 4th, 2023, due to limited mills buying support. On the other hand, Chana prices declined by Rs 50/100kg in bilty trade at Akola on slack mills trade and arrivals of new Chana. While commodity traded higher by Rs 75/100kg at Bikaner due to need-based buying of good quality produce on the immediate requirement for crushing. Arrivals of new Chana in Rajasthan may start during March. Chana dal prices at Jaipur & Akola gained by Rs 25-100/100Kg due to fresh offtake. At the same time, the commodity slipped by Rs 200/100Kg at the Indore market on dull offtake. On the other hand, Tanzania-origin Chana price stayed unchanged at Rs 4,450-4,550/100Kg in Mumbai.

Data from the most recent Rabi sowing report indicates that India Rabi Chana acreage for 2022-23 decreased by 1.9% year-on-year, totaling 112.01 Lakh Ha on Jan 27, compared to 114.18 Lakh Ha for the same period a year ago.

As per the technical chart - Chana Delhi (Rajasthan Line) - Counter trend decline / next support at Rs 5,000. Click here

Trend: Rates are projected to be under pressure in the short term as new crop arrivals accelerate in select producing centres and the selling of old crops by NAFED on a regular basis at reduced prices. However, the downside in prices should be limited for reasons such as mills purchasing to meet immediate needs and a decrease in sowing acreage. Furthermore, because of the election year, market players expect Chana procurement by government agencies is likely to be higher. Procurement at MSP will start in Gujarat in March, while registration in Madhya Pradesh has already begun, supporting prices. Furthermore, demand during Ramzan is expected to increase by mid-February, which may perhaps reverse the current downward trend.