Chana Fu­tures at a Record de­spite NCDEX Cut­ting Trader Lever­age

Pro­duc­tion ex­pected to be two-fifths be­low last year’s, hence the jump

The Economic Times - - Commodities Plus - Ram.Sahgal@ times­group.com

Mum­bai: The ac­tive chana fu­tures hit the up­per cir­cuit to close at a record high of .₹ 5,543 a quin­tal (100 kg) on Fri­day de­spite the ar­rival sea­son hav­ing got un­der way. Bro­kers and traders at­trib­uted the jump to pro­duc­tion ex­pected to be two-fifths be­low last year’s 87 lakh tonnes.

Traders were also com­forted by fears of a ban in chana fu­tures get­ting al­layed by a reg­u­la­tory clar­i­fi­ca­tion. Rather, the reg­u­la­tor di­rected NCDEX, which of­fers chana fu­tures, to raise the mar­gin on buy­ers (longs) to 45% (25% in cash) from 20% ef­fec­tive April 22. So de­spite the spe­cial cash mar­gin kick­ing in on Fri­day, chana hit a record high.

On an ag­gre­gate ba­sis, open in­ter­est (OI) jumped to 39,210 tonnes from 38,200 tonnes a day ear­lier – ev­i­dence of a long build up. What’s im­por­tant is that chana fu­tures are sig­nalling prices to jump in the months ahead – .₹ 5,635 in June and .₹ 5,710 in July, which war­rants timely ac­tion by the govern­ment to im­port more for meet­ing the ris­ing de­mand.

In­ci­den­tally, the fu­tures price of chana was trad­ing at a dis­count to the spot price of .₹ 5,589.4 polled by NCDEX, show­ing that ar­rivals were prob­a­bly not up to ex­pec­ta­tions.

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