Chana futures closed flat on Tuesday after plunged 4% on Monday despite 10% increase in Minimum Support prices to Rs. 4,400 per quintal by the government. Futures prices are well above the MSP prices and thus pressurised due to profit booking by the market participants due to higher stocks and steady demand. Moreover, sufficient stocks levels in the country and good production forecast for next season may keep the prices near MSP.

Outlook

Chana futures may trade lower as market participants are expecting higher production during the new season coupled with higher stocks in the country.

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