Chana prices to trade sideways to higher: Angel Commodities

Angel Commodities' report on Chana

NCDEX Chana edged little higher on Wednesday and trading in a range after it jumps to 3-week high on Monday. Improvement in demand in physical market is supporting price. On reports the government resumed disposal of chana stocks in Maharashtra and Madhya Pradesh the prices have slipped to 4-month low early in July. Majority of stock is with the government agencies. As per govt data, chana imports increase by 212% in April compared to last year at 24,600 tonnes. Currently, chana attract 60% import duty since Mar 2018 which restricted imports. However, imports were down 84% to 1.86 lt in 2018/19 (Apr-Mar) compared to 9.81 lt last year, while exported are about 2.28 lt compared to 1.28 tonnes last year. In 2018/19, chana output forecast revised slightly lower at 100.90 lt in 3rd advance estimate compared to 103.2 lt in 2nd advance estimated by Government.

Outlook

Chana futures will trade sideways to higher as government agencies holding major portion of Chana may auction to stabilize prices near MSP. However, stocks with physical traders diminishing amid lower imports and high consumption may support prices.