Commodity Trading Tips for Chana by Kedia Commodity

Ajay Kumar Kedia 8 August 2013

Chana Chana yesterday settled down -1.45% at 2782 on expectations of higher summer-sown pulses output, while the likelihood of better rabi planting due to ample rains also weighed on sentiment. Farmers began planting summer-sown, or kharif, pulses well ahead of the normal schedule this season because of heavy rains. Summer-sown pulses have been planted on 7.95 million hectares as of Aug 1, compared with 6.30 million hectares in the same period a year earlier. Chickpea is a rabi crop sown during the winter and farmers depend on rains to moisten the land for sowing. The arrivals in Delhi market were steady at 50 trucks after coming in at 40 trucks in last session. The supplies in last week averaged around 35/40 trucks per day. The current week's trend indicates that not much supply will come in now if prices do not witness some pick up. The progress on the kharif pulses harvest front is impressive. As per latest release from Ministry of Agriculture, the acreage under pulses has shot up by 26.21% to 79.5 lakh hectares. This is mainly due to strong sowing of Tur and Urad in Maharashtra. 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. The area sown under pulses for 2013-14 kharif crop touched 79.50 lakh hectares (lh) higher when compared to 62.99 lh during the same period last year, as per the data released by the Ministry of Agricultures. In Delhi spot market, chana dropped by -24 rupee to end at 2895.9 rupee per 100 kgs. Now Chana is getting support at 2760 and below same could see a test of 2739 level, And resistance is now likely to be seen at 2815, a move above could see prices testing 2849.