Commodity Trading Tips for Chana by KediaCommodity

Ajay Kumar Kedia 25 June 2012

Chana Chana gained Rs 16 and settled at Rs 4236 per quintal on buying by traders expecting a rise in demand in coming weeks and due to a delayed monsoon, which could impact sowing of pulses. The delay in monsoon in key pulses growing region could adversely impact pulses sowing and is pushing up prices of all pulses including chana. India's crucial monsoon rains, which were below normal and delayed, are expected to recover in the next few weeks and are likely to be average in 2012. The weather office also forecast average rains in July and August, key months for planting and maturing of crops. India's pulses output in the current crop year ending in June fell to 17.02 million tonnes from 18.24 million tonnes in previous year. Demand for pulses usually goes up during rainy season due to lower availability of fresh vegetables. Moreover, the total daily arrivals of chana have also reduced to 40000 bags from 85000 bags that were reported earlier due to restricted selling by traders and farmers. India's chana production this year fell to 7.4 million tonnes from 8.22 million tonnes in the previous year. Pulses output is pegged at 17.02 mn tn compared with 18.24 mn tn produced in the year 2010-11 while Chana output in 2011-12 is estimated lower at 7.40 million tonnes as compared to 7.66 million tonnes as stated in second Advance estimates and 8.22 mn tn produced last year. In Delhi spot market, chana fell down by -6.85 rupee to end at 4239.6 rupee per 100 kgs. The volume was noted at 53170 lots. Support for chana is at 4201 below that could see a test of 4167. Resistance is now seen at 4265 above that could see a resistance of 4295.