Chana settled up 0.3% at 3054 as the government procurement began in Rajasthan and Gujarat. Domestic demand for the pea is weak as the crop available in local mandis is of inferior variety. Daily chana arrivals rose to 70-100 trucks a day from 35-40 trucks a day. Chana was sown over an area of 10.21 million hectare compared to 9.5 million hectare a year ago thanks to normal monsoon and good soil moisture. Agriculture ministry has estimated chana record output at 9.79 million ton up from 8.83 million ton a year ago. The rather poor quality of Chana in the ready markets pushed up the demand from local stockists. The wedding season is in full swing in Northern part of the country and Chana prices are witnessing some stable movements. Masur supplies are also likely to be thin amid good demand and it could support the overall pulses market. The seasonally weak supplies period is about to start and further gains could be seen in the prices in coming days. After a good start to the sowing, the acreage under pulses is stabilizing now. The market sources suggests that Maharashtra is planning to procure 20 thousand tonnes, Haryana government 70 thousand tonnes and Rajasthan to procure 2 lakh tonnes of chana in the current marketing season at minimum support price of Rs 3150 per quintal. Technically market is under fresh buying as market has witnessed gain in open interest by 12.81% to settled at 140800 while prices up 9 rupee, now Chana is getting support at 3037 and below same could see a test of 3020 level, And resistance is now likely to be seen at 3075, a move above could see prices testing 3096.

Trading Ideas:

Chana trading range for the day is 3020-3096.

Chana prices gained steadily as the government procurement began in Rajasthan and Gujarat.

Domestic demand for the pea is weak as the crop available in local mandis is of inferior variety.

NCDEX accredited warehouses chana stocks dropped by 4923 tonnes to 61353 tonnes.

In Delhi spot market, chana gained  by 21.35 rupee to end at 3000 rupee per 100 kgs.