Chana futures on the National Commodity and Derivatives Exchange Ltd may gain further due to improved demand ahead of festival season. Recent fall in arrivals in the spot markets should also support prices on NCDEX.
August contract on NCDEX tested new highs of Rs 4,741 a quintal on Saturday and settled 1.26 per cent higher.
As per the latest IMD report, overall monsoon has recovered from last week with overall rainfall registering 101 per cent of the long period average.
However, rains at major pulses growing regions still remain deficient. About 36 per cent of the pulses grown in India are cultivated during the kharif season.
Area under kharif pulses, which was up by 5.3 per cent as on July 5, is now down by 37 per cent as on July 12, 2012. Although chana is a rabi crop, it also takes cues from monsoon and the sowing progress of kharif crops.
According to the Ministry of Agriculture, 20.54 lakh hectares have been covered under kharif pulses as on July 12 compared with32.83 lakh hectares in the same period last year, a decline of almost 12.29 lakh ha. Sowing is reported lower mainly in Rajasthan.