Commodity Trading Tips for Chana by KediaCommodity

Ajay Kumar Kedia 23 November 2012

Chana Chana dropped Rs 30 and settled at Rs 4238 per quintal due to hopes of higher area under cultivation and weak demand in spot markets after major festivals ended. Consumption of chana has come down after festivals. Prices are expected to come down further in the coming weeks. Chana, or chickpea, is a winter crop and its sowing, which is in progress, depends on soil moisture. Sources expects imports of pulses to be higher in 2012/13 because of an estimated drop in kharif output. The first advance estimates from the farm ministry show the output of kharif or summer-sown pulses could fall to 5.26 million tonnes from 6.16 million tonnes a year earlier. With the area under sowing for chana taking a hit due to erratic weather conditions, traders expect imports to rise sharply over the next two months. Increased availability due to imports is likely to pull down chana prices by 10-15 per cent by February 2013 from its current levels. Chana sowing has dropped this year owing to erratic monsoon conditions. Also, sowing for overall pulses has dropped this year. According to government data, rabi sowing under pulses is reported lower at 6.3 million hectares this year, compared to 7.61 million hectares last year. The total daily arrivals were hovering at the levels of around 25000 bags in the entire major mandies. In Delhi spot market, chana fell down by -53.15 rupee to end at 4400 rupee per 100 kgs. The volume was noted at 119920 lots. Support for chana is at 4195 below that could see a test of 4151. Resistance is now seen at 4283 above that could see a resistance of 4327.