Commodity Trading Tips for Chana by Kedia Commodity

Ajay Kumar Kedia 18 July 2013

chana Chana yesterday settled up 0.54% at 2991 due to short covering on hopes of an improvement in the local demand. Sowing progress is very good because weather is supportive and rains were also good. Demand is moderate but is expected to pick up in coming days. Farmers began planting summer-sown, or kharif, pulses well ahead of their normal schedule this season because of heavy rains. India has raised support prices for the 2013/14 summer crops. The support price for tur has been raised by 450 rupees to 4,300 rupees per 100 kg, moong by 100 rupees to 4,500 rupees per 100 kg, while support price for urad is unchanged at 4,300 rupees per 100 kg. The supplies have maintained this trend throughput the wee. The total output of Chana is likely to be 8.57 million tonnes in the current year. This marks a gain of 11.29% compared to the last year's production of 7.57 million tonnes. Rabi Pulses output is likely to be 12.09 million tonnes, up 9.61% on the year. Some talk is emerging about moong crop in Karnataka getting affected. Market data suggested that favourable rainfall in the major chana producing states such as Maharashtra and Madhya Pradesh will facilitate the better sowing conditions for chana crop in the current year. Moreover, strong chana liquidation by stockiest due to some quality concerns might also lead to some selling pressure in futures market. In Delhi spot market, chana gained by 19 rupee to end at 3114.6 rupee per 100 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by % to settled at while prices up 16 rupee, now Chana is getting support at 2970 and below same could see a test of 2949 level, And resistance is now likely to be seen at 3005, a move above could see prices testing 3019.