August 21, 2012 / 8:02 AM / 5 years ago

India chana falls on demand slowdown, rain

MUMBAI, Aug 21 (Reuters) - India’s chick peas, or chana, futures fell on Tuesday on a drop in spot demand at higher levels while improved rains over Rajasthan and Madhya Pradesh, which would help kharif-sowing, weighed on sentiment.

* Monsoon rains picked up in the past week, bringing some respite to farmers.

* Rains are expected to continue over parts of Rajasthan, Madhya Pradesh and Uttar Pradesh during next 3-4 days, the weather office said in a statement on its website.

* Key kharif pulses-growing states have received good rain in the past week, aiding cultivation. Sowing of chana, a rabi crop for which sowing starts in October, depends on soil moisture for proper growth.

* At 0757 GMT, the most-active chana for September delivery on the National Commodity and Derivatives Exchange fell 0.83 percent to 4,899 rupees per 100 kg.

* “Domestic demand has slightly come down at higher prices. The September contract may take support at 4,880 rupees and could bounce back as trend is still positive,” said Chowda Reddy, a senior analyst at JRG Wealth Management.

* In the Delhi spot market, chana fell 25 rupees to 4,900 rupees per 100 kg.

* Demand from millers and retailers eases around the 5,000-rupee level o n hopes of some dip in prices. However, the festival season is seen supporting buying on lows.

* Farmers completed sowing of kharif pulses on 8.53 million hectares by Aug. 16, down from 9.74 million hectares a year earlier. (Reporting by Meenakshi Sharma; Editing by Sunil Nair)

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