Festive fever keeps pulses on the boil

MARKET ROUND-UP

Sentiment in the pulses market has turned buoyant with the onset of the festive season. Also unconfirmed reports of damage to crops on account of rains and delayed arrivals are fuelling prices.

According to commodity analysts, there could be some marginal decline in the final estimates of pulses (moong and urad).

Chana futures, which was hovering in the range of Rs 2,275-2,300 a quintal over the past few days, has now crossed Rs 2,350 levels.

"At this pace, we expect Rs 2,400 levels in the next three to four trading sessions," said industry analysts.

In Delhi, a major chana consumption centre, spot rates at mandis were quoted at Rs 2,420 on Wednesday. Arrivals were reported to be around 300-350 tonnes.

On the National Commodity and Derivatives Exchange, the November contract closed at Rs 2,365, up 3.23 per cent in five trading sessions.

The sops announced by the government "" subsidised loans to sugar firms and the 5 per cent ethanol blending - revived the sugar futures on Wednesday with prices increasing by over Rs 35 a quintal. The market, however, slipped from the day's high.

According to commodity analysts, the market will keep going up in a rangebound fashion between Rs 1,265 and Rs 1,295 a quintal, they added.

Sources said over the next two months, festive demand will keep prices firm. "Though the mandatory ethanol blending takes effect from October 8, the sugar pile-up will temper prices. Had it been 10 per cent blending, prices could have seen some significant correction," they said. The country has produced over 30 million tonnes of sugar this year against 19 million tonnes produced last year.

On the NCDEX, the November contract went up as high as Rs 1,303 but closed at Rs 1,276, up Rs 10 over its previous close.