Commodity Trading Tips for Chana by Kedia Commodity

ChanaChana settled up by 0.62% at 3092 on account of rising demand in the spot market against limited arrivals from the major producing belts. However, a recovery in planting area in the western state of Rajasthan, capped some gains in chana prices to some extent. This encouraged many farmers to bring more area under chana. According to the fourth advanced estimates released by the Ministry of Agriculture, chana output in 2013-14 is estimated at
9.88 million tonnes, up 11.9 per cent compared with 8.83 million tonnes the previous year. The Government had initially set a target of 8.66 million tonnes. Increased acreage and favourable climatic conditions in the major producing States such as Madhya Pradesh, Maharashtra, Rajasthan and Karnataka also helped to push up the yield. Being a rabi crop, sowing of chana takes place after the harvesting of kharif crops between October and December, while harvesting takes place from January through May. Lower prices on the back of record output and comfortable supplies may force farmers to switch over to other remunerative crops such as mustard and coriander which could yield better returns. Due to this, the Government has set a target of 9.3 million tonnes for chana output for 2014-15 rabi season, down 5.87 per cent. In Delhi spot market, chana dropped by -12.95 rupee to end at 3072.05 rupee per 100 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 3.71% to settled at 93880 while prices up 19 rupee, now Chana is getting support at 3063 and below same could see a test of 3034 level, And resistance is now likely to be seen at 3118, a move above could see prices testing 3144.

Trading Ideas:

Chana trading range for the day is 3034-3144.

Chana prices ended with gains on account of rising demand in the spot market against limited arrivals from the major producing belts.

However, a recovery in planting area in the western state of Rajasthan, capped some gains in chana prices to some extent.

NCDEX accredited warehouses chana stocks gained by 1864 tonnes to 36920 tonnes.

In Delhi spot market, chana dropped by -12.95 rupee to end at 3072.05 rupee per 100 kgs.