Chana yesterday settled down -0.54% at 2739 weighed by a rise in the cultivating area of summer-sown pulses, favourable weather and weak local demand. Ample rains in the country have raised the prospects of better chana sowing in the rabi season. Farmers began planting summer-sown, or kharif, pulses well ahead of the normal schedule this season because of heavy rains. Chickpea production in the country is estimated at 8.8 mn tons in 2012-13 season, according to the fourth advance estimates released by the Ministry of Agriculture. With a significant hike in minimum support price (MSP) of kharif pulses for 2013-14 season, the area under cultivation is expected to increase this year. The total area sown under pulses for 2013-14 kharif crop is estimated at 31.62 lakh hectares (lh) higher when compared to the 20.54 lh during the same period last year. According to the government of Andhra Pradesh the area sown under pulses is up by 1.5% at 4.02 lh. The area sown under pulses has touched 4.51 lh in Rajastha as per the government estimates. 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. In Delhi spot market, chana dropped by -35 rupee to end at 2836.4 rupee per 100 kgs. Now Chana is getting support at 2710 and below same could see a test of 2682 level, And resistance is now likely to be seen at 2770, a move above could see prices testing 2802.

Trading Ideas:

Chana trading range for the day is 2684-2804.

Chana dropped weighed by a rise in the cultivating area of summer-sown pulses, favourable weather and weak local demand.

Ample rains in the country have raised the prospects of better chana sowing in the rabi season.

NCDEX accredited warehouses chana stocks dropped by 444 tonnes to 154248 tonnes.

In Delhi spot market, chana dropped by -35.3 rupee to end at 2836.35 rupee per 100 kgs.