Chana futures jump 2.5% on Tuesday after plunging 14 week low as market participants cover their short positions on reports of slow start to chana sowing in rajasthan. In Rajasthan till 31st Oct, chana is planted on only 3 lakh ha as compared to 5.6 lakh ha last year. Moreover to encourage farmers to plant more chana, Government increase MSP by 10% to Rs. 4,400 per quintal by the government. Currently, futures as well as spot prices are well above the MSP prices.

Outlook

Chana futures may trade sideways to lower due to sufficient stocks in the country on higher imports and record production last year. Market participants are expecting higher production during the new season also bearish for the prices.

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