Commodity Trading Tips for Chana by Kedia Commodity

Ajay Kumar Kedia 24 July 2013

Chana Chana yesterday settled down -2.58% at 2755 as good Kharif sowing reports from good monsoon rains, low demand and better Pulses production. As per market sources, the total chana arrival to reported lower at 70 thousand bags while the spot prices of chana in all the major mandies. Traders have reported strong supplies of chana imports in Mumbai port. As per latest release from Ministry of Agriculture, the total sowing acreage of kharif pulses as on 12th July 2013 is are reported at 25.96 lakh hectares, up almost 99% from the last year. This is mainly due to strong sowing of Tur and Urad in Maharashtra. Therefore, gains in kharif sowing acreage prompted sharp decline in chana demand in physical mandies. Healthy arrivals in Delhi market are also affecting sentiments and spot prices continue to linger around their two-year lows. The arrivals in Delhi's Lawrence Road mandi are 55 trucks after coming in at 65 trucks in the last session. The supplies had averaged around 30 trucks in the last week. 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. India's chana production is expected to be at 8.49 mn tons in 2012-13, according to the third advanced estimates by the Ministry of Agriculture. The estimated output is higher, when compared to the last year's 7.70 mn tons. In Delhi spot market, chana dropped by -104 rupee to end at 2871.7 rupee per 100 kgs. technically market is under long liquidation as market has witnessed drop in open interest by -10.29% to settled at 164050 while prices down -73 rupee, now Chana is getting support at 2719 and below same could see a test of 2684 level, And resistance is now likely to be seen at 2811, a move above could see prices testing 2868.