Chana settled down -2.1% at 2891 as arrivals begun from some parts of India amid higher sowing progress in various parts of the country. Farmers are trying to sell stocks as prices have fallen below the minimum support price and they fear that prices might fall further. Arrivals will further rise in coming days as fresh supplies have started coming in market and also due to robust sowing. Arrivals rose by 5 trucks to 40 trucks market compared to previous day in Delhi physical market. Chana sowing rose to 10.12 million hectares till Jan 24 compared to 9.33 million hectares a year earlier, government data showed. Pulses sowing rose to 15.65 million hectares as on Jan 24 compared to 14.9 million hectares a year earlier, data released by the government showed. Chana prices are expected to rise by the end of February due to festivals like Holi and marriage activities. As per the latest data release from Ministry of Agriculture, the total sowing acreage of chana as on 17th January 2014 has been reported at 102.20 lakh hectares against 92.30 lakh hectares in the last year in same period. This will increase the chana production to 74-75 lakh tonnes in the near term. The chana crop will also be well supported by favourable rainfall in northern India from the last two days. This will boost the productivity of crop. In Delhi spot market, chana dropped  by -19.65 rupee to end at 2901.8 rupee per 100 kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -5.88% to settled at 68530 while prices down -62 rupee, now Chana is getting support at 2862 and below same could see a test of 2832 level, And resistance is now likely to be seen at 2937, a move above could see prices testing 2982.

Trading Ideas:

Chana trading range for the day is 2832-2982.

Chana prices dropped as arrivals begun from some parts of India amid higher sowing progress in various parts of the country.

Farmers are trying to sell stocks as prices have fallen below the minimum support price and they fear that prices might fall further

NCDEX accredited warehouses chana stocks gained by 922 tonnes to 12464 tonnes.

In Delhi spot market, chana dropped  by -19.65 rupee to end at 2901.8 rupee per 100 kgs.