Commodity Trading Tips for Chana by KediaCommodity

Ajay Kumar Leyangi 20 May 2013

Chana Chana dropped Rs 32 and settled at Rs 3389 per quintal as estimates of higher output and new season supplies weighed on sentiment though upside was limited due to an improvement in local demand in the wedding season. Supplies from the new season crop are coming in from the states of Rajasthan, Maharashtra and Madhya Pradesh. However, Sources expect these to slow down as the peak season is about to end. Demand for chana is likely to increase in the wedding season. Chana output is expected to be 8.49 million tonnes in 2012/13 as per the agriculture ministry's third advance estimate as against 7.70 million tonnes a year earlier. There are some concerns over the yield and quality of the crop in Madhya Pradesh, the top chana producer in India, after unseasonal rainfall in February. Chana arrivals in Delhi edged up after falling during most of the week. Chana prices continue to take support at lower levels though, edging up above Rs 3400 per quintal yesterday. The supplies in the city had dropped quite drastically in the last week, as farmers did not show an active enthusiasm in bringing their produce to the mandies. The wedding season also took a toll on the market activity. However, the overall supply condition remain good this year. The total output of Chana is likely to be 8.57 million tonnes in the current year. This marks a gain of 11.29% compared to the last year's production of 7.57 Million tonnes. Rabi Pulses output is likely to be 12.09 million tonnes, up 9.61% on the year. The supplies in Delhi totaled 40 trucks compared to 25 trucks. In Delhi spot market, chana fell down by -51.45 rupee to end at 3391.9 rupee per 100 kgs. The volume was noted at 53510 lots. Support for chana is at 3371 below that could see a test of 3354. Resistance is now seen at 3417 above that could see a resistance of 3446.