Chana weakens on profit-booking

"Sell" action at high prices amid weak demand in spot markets pulls chana prices down

Chana prices weakened by Rs 12 to trade at Rs 3,621 per quintal in futures trading today after speculators booked profits, driven by sluggish demand in the spot market.

However, expectations of a fall in output this season capped the losses.

Chana for delivery in April, on the National Commodity and Derivatives Exchange, declined by Rs 12, or 0.33%, to Rs 3621 per quintal in open interest of 16,600 lots.

The May contract shed Rs 12, or 0.32% today, to Rs 3737 per quintal in 107,110 lots.

Market analysts said speculators booked profits today, driven by sluggish demand in the spot market. This mainly drove chana prices to trade lower in futures trade.