Commodity Trading Tips for Chana by KediaCommodity

Ajay Kumar Kedia 22 August 2013

Chana Chana yesterday settled up 3.01% at 3083 on weak arrivals and higher demand in local mandis. Further, improved buying support from the millers too supported Chana prices. Hopes of better sowing in the winter-months due to good monsoon rains and hopes of higher summer-sown output weighed on the sentiment. Chickpea is a rabi crop sown during the winter and farmers depend on rains to moisten the land for sowing. Local demand for chana flour is likely to pick up in the coming days, ahead of Ganesh Chaturthi, a local festival. With skies clearing up over North India to some extent, demand has started rising. The arrivals in Delhi market remain lackluster at 25 trucks. This is an indication that the stockists are running out of supplies. Demand from retailers is very strong in all ready pulses. 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. However, heavy rains in Maharashtra could hurt the output of Tur and Urad. A good pick up is also being expected in demand for Masoor in coming days. In Delhi spot market, chana gained by 92 rupee to end at 3150 rupee per 100 kgs. Technically market is under short covering as market has witnessed drop in open interest by -2.69% to settled at 145070 while prices up 90 rupee, now Chana is getting support at 3003 and below same could see a test of 2923 level, And resistance is now likely to be seen at 3123, a move above could see prices testing 3163.