Chana dropped Rs 34 and settled at Rs 4145 per quintal on apprehensions of Govt interventions to check rising prices. The government usually buys farm produce through its agencies from farmers at pre-agreed rates, known as minimum support prices, to help avoid distress sale. According to preliminary reports received from the States, pulses have been sown in 13.71 lakh hectares in the current sowing season as on 18th May, 2012. The cultivated area is higher by 10.15 lakh hectares as compared to last year on this date. Domestic demand continued to remain good. Better Indian Food-grain production and in other items could prevent prices from rising a lot though. But expected fall in Pulses production could support Chana prices in medium term. As per 3rd Advanced Estimates. Pulses output is expected to fall to 17.02 mln tonnes vs 18.24 mln tonnes in 2010-11. Lower acreage contributed for this fall as per reports. Output in Maharashtra in 2011-12 is seen down 42% at 7.5 lakh tn, while Karnataka’s 2011-12 output is seen at 4.98 lakh tn compared to 6 lakh tn last year. Reports of decline in Pulses production especially Tur from states like AP, Maharashtra and Karnataka due to reported lower rainfall activities there. The total daily arrivals of chana were hovering at the levels of around 1.50 lakh bags in the entire major mandies, up 5000 bags from the last day. In Delhi spot market, chana fell down by -17.65 rupee to end at 4132.35 rupee per 100 kgs. The volume was noted at 104140 lots. Support for chana is at 4109 below that could see a test of 4074. Resistance is now seen at 4206 above that could see a resistance of 4268.
Chana trading range for the day is 4074-4268.
Chana ended lower on apprehensions of Govt interventions to check rising prices.
The cultivated area is higher by 10.15 lakh hectares as compared to last year.
NCDEX accredited warehouses chana stocks gained by 811 tonnes to 76433 tonnes.
In Delhi spot market, chana fell down by -17.65 rupee to end at 4132.35 rupee per 100 kgs.
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