Week Ahead: Chana prices are unlikely to see significant changes; sowing activity in focus

MUMBAI, 19 Nov (Commoditiescontrol): Prices of domestic variety Chana traded flat during the week ending to Nov 19th, 2022, their second straight week of little price move, due to the limited trade from mills, which resulted from need-based offtake of Chana Dal and Besan.

On the other hand, Chana prices traded higher by Rs 50-75/100Kg at Bikaner and Delhi market as mills were active to purchase good quality.

Chana prices continue to feel pressure as Nafed continue to liquidate its stock to create sufficient storage capacity before the start of the next Rabi season.

Also, demand in Chana dal and besan was below expectation despite ongoing wedding season.



India 2022-23 Rabi Chana acreage was down 0.49% (compared to the same period last year) as of Nov 18 at 52.57 Lakh Ha Vs 52.83 Last Year.



As per trade sources, sowing acreage under Kabuli Chickpea is seen relatively higher as compared to Chana, since Kabuli Chickpea offer better return.

On the other hand, Tanzania Chana price firmed up by Rs 25 at Rs 4,300-4,475/100Kg on millers buying. However, supplies from Tanzania will be negligible due to disparity.



Trend: Range-bound trade of Rs 100-200/100Kg is likely to be witnessed in Chana price due to need-based buying from mills as demand of Chana dal-besan was below expectation despite ongoing wedding season. Chana prices feel pressure as Nafed continue to liquidate its stock to create sufficient storage capacity before the start of the next Rabi season. Chana prices are unlikely to get much support despite the expectation of lower sowing acreage this year as farmers, the stockiest and the government hold adequate stock. Regular selling by stockiest and trader at every rise will restrict any up move in price. Market participants will be keeping a close watch on sowing acreage this year. On a monthly trend Delhi Chana (Rajasthan line) price remained unchanged, but is up 1.03% on weekly basis while down by 7.08% on annual basis.

As per technical chart - Delhi (Rajasthan line Chana) - Spot market trading near key trend line (Rs 4,950). Until we see a breakout above Rs 4,950, the trend remains bearish/next support at Rs 4,600. Click here

(By Commoditiescontrol Bureau; +91-22-40015513)