Chana cash market traded firm by 1 to 2%

Taking cue from other pulses, Chana cash market traded firm by 1 to 2%, on an average, and may move up by Rs100 more this week as demand too remains supportive to the cash market fundamentals. Arrival in markets have started decreasing. Chana is being traded at Rs4800. At the procurement front, NAFED and other procurement agencies have already procured 24 LMT against the set target of 29 LMT for the year. As prices are ruling down from MSP, by Rs 400-450, the target is likely to be achieved as the procurement date in M.P. has been extended till June. Availability of old stocks, arrivals and the normal demand for dal are restricting Chana markets. If the demand improves, likely from mid-June, prices may recover by Rs 100-200 and may move towards the 5000 mark. Beyond that level market may face resistance as there is ample old stocks and it will continue to enter-into markets. Chana in various market is trading at Rs 4600-4800. Chana imported from Tanzania is being offered at Rs4300-4350 in Mumbai. As quality of African origin Chana is not good, its demand is limited.