Chana gained Rs 125 and settled at Rs 4265 per quintal on the back of weak arrivals from the fresh crop but upside was limited due to fear of government intervention to curb spiraling prices. In the earlier sessions the commodity traded higher 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. Chana production is expected to fall by 6.8% to 7.40 mln tonnes as compared to 8.22 mln tonnes last year. Lower acreage contributed for this fall as per reports (Chana acreage reportedly fell by ~4% to 89.57 lakh ha vs 93.41 lakh ha same period last year. As per Rajasthan farm department's first advance estimates for Rabi crops, Chana output is estimated down 7.8% at 14.76 lakh tonnes in 2011-12 season vs 16 lakh tonnes in 2010-11. 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. The total daily arrivals of chana were hovering at the levels of around 1.40 lakh bags in the entire major mandies, up 20000 bags from the last day. In Delhi spot market, chana jump up by
64.7 rupee to end at 4250 rupee per 100 kgs. The volume was noted at 112010 lots. Support for chana is at 4192 below that could see a test of 4118. Resistance is now seen at 4302 above that could see a resistance of 4338.
Chana trading range for the day is 4118-4338.
Chana gained on the back of weak arrivals from the fresh crop but upside was limited due to fear of government intervention.
Pulses output is expected to fall to 17.02 mln tonnes vs 18.24 mln tonnes in 2010-11.
NCDEX accredited warehouses chana stocks gained by 30 tonnes to 78927 tonnes.
In Delhi spot market, chana jump up by 64.7 rupee to end at 4250 rupee per 100 kgs.
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