Chana yesterday settled down -1.32% at 3134 as expectations of better sowing in the winter months and higher area under summer-sown pulses weighed on sentiment. It is expected to fall further as higher area under cultivation and rains are keeping prices under pressure. Local demand for chana flour is likely to pick up in the coming days, ahead of Ganesh Chaturthi, a local festival. Intermittent profit booking continued to be noted at the higher levels as rates have moved up a lot over last few days. 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 tons in the current year. This marks a gain of 11.29% compared to the last year's production of 7.57 million tons. Rabi Pulses output is likely to be 12.09 million tons, 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. India's food grain production in 2012-13 year is estimated at 255.36 mn tons, lower when compared to 259.29 mn tons recorded in the last year. Also, pulses output is projected at record 18.45 mn tons, as per 4th Advance Estimates of Food-grain Production released by the Ministry of Agriculture, last month. In Delhi spot market, chana gained by 20 rupee to end at 3312.2 rupee per 100 kgs. Now Chana is getting support at 3101 and below same could see a test of 3069 level, And resistance is now likely to be seen at 3180, a move above could see prices testing 3227.

Trading Ideas:

Chana trading range for the day is 3066-3224.

Chana fell as expectations of better sowing in the winter months and higher area under summer-sown pulses weighed on sentiment

It is expected to fall further as higher area under cultivation and rains are keeping prices under pressure.

NCDEX accredited warehouses chana stocks dropped by 1793 tonnes to 118965 tonnes.

In Delhi spot market, chana gained by 20.15 rupee to end at 3312.2 rupee per 100 kgs.