Spot demand, tight supply lifts chana by 4.28%

Traders widen positions as restricted arrivals from producing belts support uptrend

Buoyed by rising spot demand and restricted arrivals from producing belts, chana prices shot up by 4.28 per cent to Rs 5,190 per quintal in futures trade today as traders widened their positions.

At the National Commodity and Derivatives Exchange, chana for delivery in current month rose sharply by Rs 213 or 4.28 per cent to Rs 5,190 per quintal with an open interest of 4,430 lots.

The November contract traded higher by Rs 177 or 3.47 per cent to Rs 5,275 per quintal in 81,055 lots.

Analysts attributed the rise in chana prices to increased positions built up by speculators amid surging demand in the spot market against restricted supplies from producing belts following lower estimated output.