Chana futures on the National Commodity and Derivatives Exchange Ltd (NCDEX) gained 0.44 per cent to Rs 4,796 per quintal on account of improved demand at lower levels.
Chana for September delivery on NCDEX has fallen two per cent in the last one week. Moreover, there were concerns on global supplies being hit due to erratic weather.
As per the India Meteorological Department, monsoon has recovered in the last two weeks covering up most of the deficit. It is now only two per cent below long period average.
This has aided the sowing of kharif pulses in the last one week. Chana, a rabi crop, will also be benefited by the recharge of ground water.
However, overall weak rainfall would have a significant impact on the yield of kharif pulses.
The Government has released the fourth advance estimates of chana output to be higher at 7.58 million tonnes against 7.4 mt announced in the previous estimate. However, the estimate is much lower than 8.22 mt achieved last year.