Friday, April 27, 2012

NCDEX CHANA-CHARJDDEL TIPS 27 APR 2012


CHANA PRICES RISING RAPIDLY AS DEMAND RISES FOR BESAN

DATE: 27/04/2012                                                                                                                                      

Chana prices are rapidly rising as demand rises for besan but arrivals of the winter harvest dwindle. Chana has the biggest share of the Indian pulses market.

NCDEX Chana futures ended higher on Thursday supported by lower production concerns for 2011-12. May contract closed higher by 1.16% to close at 3744.00/quintal. The upside was also supported by reports that unseasonal rains in northern states have also affected the remaining harvest.

According to the Ministry of Agriculture, pulses production has been revised lower to 17.02 million tonnes (3rd Advance Estimate) in 2011-12 compared to previous estimate of 17.28 million tonnes (2nd Advance Estimate) in 2011-12. Chana production is expected to be lower at 7.66 million tonnes in 2011-12 vs. 8.22 million tonnes in 2010-11.

The country imported 2.66 million tonnes of pulses during April-January period of last fiscal to meet domestic demand. The domestic demand of pulses was 18.84 million tonnes for last fiscal. According to the Ministry of Agriculture, India had imported 2.69 million tonne in the entire 2010-11 fiscal.

According to Directorate General of Foreign Trade (DGFT) India's import of Chana in 2010-11 was 100,645.88 tonnes. India imported 14,166.59 t during 2011-12 (April-June). The imports are expected to be higher driven by rising consumption and likelihood of lower produce.

However, imports may be affected by the weaker rupee against the dollar. The rupee ended at 52.40 against the dollar on Thursday. According to Agriculture and Agri-Food Canada, production of Chana in Canada is forecast to be 91,000 tonnes in 2011-12 compared to 128,000 tonnes in 2010-11. Canadian carry-out stocks for 2011-12 year are forecast to be lower at 20,000 tonnes lower than 22,000 tonnes in 2010-11.

According to Australian Bureau of Agricultural and Resource Economics and Sciences, production of Chana in Australia is forecast to increase to 485,000 tonnes in 2011-12 compared to 379,400 tonnes in 2010-11. Australia exported 249,655 t of Chana during October-February 2011-12. However, lower carry-out stocks and increasing domestic consumption may lead to lower exports in 2011-12.
POWERED BY: THE ECONOMIC NEWS

                      

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