Commodity Trading Tips for Chana by KediaCommodity

Ajay Kumar Kedia 26 July 2013

Chana Chana yesterday settled down -3.97% at 2637 due to sluggish domestic demand, higher area under summer-sown pulses and favourable weather. Ample rains in the country have raised the prospects of better chana sowing. Chana is a rabi crop sown during the winter and farmers depend on rains to moisten the land for sowing. India's 2012/13 pulses production is estimates at 18.45 million tonnes. Healthy arrivals in Delhi market are also affecting sentiments and spot prices continue to linger around their two-year lows. The arrivals in Delhi's Lawrence Road mandi are 55 trucks after coming in at 65 trucks in the last session. The supplies had averaged around 30 trucks in the last week. 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 traders are eying moong arrivals to start from August end from Rajasthan. A continued decent spell of rainfall in Maharashtra and Southern states is also auguring good from the point of view of other key pulses like Tur and Urad and not much of an upside is seen in Chana prices even as the spot rates continue to get good support at their two year lows. Similarly, not much activity was seen in international pulses market as Australian chana prices were trading around Rs 3000 per quintal in the last trading. As per latest release from Ministry of Agriculture, the total sowing acreage of kharif pulses is are reported at 25.96 lakh hectares, up almost 99% from the last year. In Delhi spot market, chana dropped by -51 rupee to end at 2785.3 rupee per 100 kgs. Now Chana is getting support at 2602 and below same could see a test of 2566 level, And resistance is now likely to be seen at 2708, a move above could see prices testing 2778.