SMC COMTRADE PVT' LTD'

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SMC COMTRADE PVT. LTD.
BEHAVIOUR OF CHANA IN THE YEAR GONE BY AND IN THE
CURRENT YEAR
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Important facts about Chana

• Chana is a Rabi crop and is sown from November to
  December and harvested from Feb to March. The
  peak arrival period begins from March-April at
  the major trading centres of the country. 
• Major producing states of Chana are Madhya
  Pradesh, Uttar Pradesh, Rajasthan and
  Maharashtra. India is the largest producer of
  Chana accounting for 65 of the total production.
  
• It has highly fragmented value chain including
  stockists, millers, wholesale traders and
  brokers.
• Major trading centres of Chana are Indore, Delhi,
  Jaipur, Bikaner and Jalgaon.

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Contribution of different states in the Production
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AMAZING FACTS ABOUT CHANA

• Native land of Chana is Turkey popular throughout
  China, India, North and Eastern Africa, Europe,
  the Americas and Australia.
• You can get 20 of your daily iron in just one
  cup of Chana.
• An acid exudation from the seedpods is
  astringent. It has been used in the treatment of
  snakebite.
• The roasted pea is a coffee substitute and the
  roasted root can also be used.
• A refreshing drink can be made from the acid dew
  that collects on the hairy seedpods.

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WORLD SHARE
SHARE OF WORLD PULSES PRODUCTION
Importers position of pulses 1990 2005 India
2 1 Spain 7 2 China 15 3 Pakistan 17 4 Belgium
4 5 Italy 5 6 Egypt 18 7 Bangladesh 8 8 Nether
lands 1 9 United States 20 10 Colombia 16 11 Mexi
co 6 12
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Reasons for the bullishness in Pulses in 2006

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• Aggressive demand in the spot and future market.
• Less production coupled with shrinking stocks in
  the spot market.
• Reduced arrivals.
• Damaged in crops, especially in Urad.
• Festival demand.
• Global deficit in the availability of stocks of
  Pulses.
• High import prices.
• Speculative activities .

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Factors responsible for the bearishness in Chana
in 2007

• Demand supply mismatch.
• Estimation of bumper crop due to favorable
  weather condition, timely rain in growing areas.
• Fresh arrivals in southern states.
• Import of Pulses from Australia, Myanmar, Canada
  etc.
• Dull sentiments in spot market.
• Government intervention.
• Approaching election in various states.
• Fresh vegetables.
• Regulations by FMC.
• Offloading of stocks by stockists.
• One month early harvesting of Chana crop.

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COMPARISON OF AREA UNDER CULTIVATION OF 2005-06
AND 2006-07
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PRICE MOVEMENT OF CHANA AT NCDEX IN JAN CONTRACT
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COMPARISON OF CHANA PRICES IN DIFFERENT MARKETS
MARKET VARIETY SPOT RATES Delhi Desi
Chana (Rajasthan Line) 2500 Delhi Desi
Chana (MP Line) 2500 Delhi Desi
Chana (Maharashtra Line) NA Indore Desi Chana
NA Mumbai Australia Chana (Ready Delivery)
2450 Mumbai Tanzania Chana (Ready Delivery)
2400 Mumbai Canada Chana 2425
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PROGRESS OF SOWING UP TO 10TH NOV, 06
(Lakh hectares) Major States Sowing
progress Extent Total Area Sown TE
  2006-07 2005-06 Completed (2005-06)
2005-06 MP 15.26 13.69 59.6
25.61 27 UP 3.75 NA 50.7 7.4
7.46 Raj 7.23 7.13 66.8 10.82 10.78 Maha
5.62 4.47 51.7 10.88 9.04 Source
Directorates of Agriculture, respective states
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COMPARISON OF PRICES BETWEEN DIFFERENT CONTRACTS
ON MCX AND NCDEX
MARKET CONTRACT RATES MCX Desi Chana (Jan)
2471 MCX Desi Chana (Feb) 2196 MCX Desi
Chana (Mar) 2105 MCX Desi Chana (Apr)
2100 NCDEX Desi Chana (Jan) 2429 NCDEX Desi
Chana (Feb) 2216 NCDEX Desi Chana (Mar)
2066 NCDEX Desi Chana (Apr) 2077 NCDEX Desi
Chana (May) 2112
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Factors favouring Chana to lift up in the market
in 2007

• Festival and wedding season
• Technical recovery
• Lower world supply in Lentil and Chick Peas

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THANK YOU HAPPY WISE INVESTING
THANK YOU HAPPY AND WISE INVESTING
PRESENTED BY
VANDANA BHARTI
VANDANA BHARTI SENIOR COMMODITY RESEACH ANALYST