Chana traded with high volatility

Chana Chana traded with high volatility as demand rose slightly at these lower levels. Traders anticipate demand to start rising in the coming days as Elections get over—and that could support the prices to some extent. Reports of weak Monsoon as pre-dicted by IMD did firm up rates last week but Elections and the intermit- tent holidays have kept demand low. Poor quality arrivals amidst lack of strong demand from millers have been keeping prices down for Chana in recent weeks. But with rates hav-ing fallen a lot, domestic demand is likely to rise once Elections get over. Australian Chana production report-edly has fallen by 23%. Significant imports at low rates (with Dollar remaining weak vs Re) have pre-vented any strong uptrend. As per ministry of Agriculture re-ports, sown area for Rabi Pulses is projected at a record high 16.2 mil-lion. Significant improvement in yield to move above 900kg/ha was also possible due to conducive weather. Indian government raised MSP for Chana for marketing year 2014-15 to Rs. 3100/Q — up Rs. 100 than last year prices. This enabled a rise in sowing area. Imports of Pulses from Myanmar, Australia and Canada have risen. Imports of Kabuli Chana are there. A fall in Dollar vs Re has kept the import cost low however, which is ensuring Pulses rates show-ing some corrections. In the first nine months of fiscal 2013-14, pulses arrivals from abroad aggregated 2 mt; for the whole year, imports are projected at 2.6 mt, sharply down from 3.8 mt last year, according to Commerce Ministry data. As per 2nd Advanced Govt Esti-mates, Pulses production in 2013-14 is likely to rise to 19.77 million tons—up from 18.34 million tonnes in 2012-13. Production of all major Pulses—Chana, Tur and Moong, except Tur are expected to rise. Tur production in 2013-14 expected up at 3.34 million tonnes—up from 3.02 million tonnes; Chana at 9.79 million tonnes - up from 8.83 million tonnes; Urad at 1.59 million tonnes—down from 1.9 million tonnes; Moong at 1.28 million tonnes—up from 1.19 million tonnes in 2012-13.