Chana settled up 0.52% at 3070 as buying returned in spot markets after elections ended in most of the states after prices dropped amid higher arrivals of the pea in domestic market as well as rising ware house stocks. Demand is weak as poor quality is available in domestic market which will pressurise the prices of chana. Demand for the pea is weak in domestic market as the chana available is of inferior quality. Daily chana arrivals rose to 70-100 trucks a day from 35-40 trucks a day for the week ended May 9. 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. National Agricultural Cooperative Marketing Federation of India (NAFED) is procuring in major producing states such as Maharashtra and Karnataka since February and procurement in Madhya Pradesh which has commenced since the start of last month, various surveys showed.   Procurement in Rajasthan by the NAFED was delayed by two weeks due to poor quality and lower arrivals. Reports of weak Monsoon as predicted by IMD did firm up rates last week but Elections and the intermittent holidays have kept demand low. Technically market is under fresh buying as market has witnessed gain in open interest by 12.38% to settled at 158230, now Chana is getting support at 3048 and below same could see a test of 3025 level, And resistance is now likely to be seen at 3091, a move above could see prices testing 3111.

Trading Ideas:

Chana trading range for the day is 3025-3111.

Chana ended with gains as buying returned in spot markets after elections ended in most of the states.

Procurement in Rajasthan by the NAFED was delayed by two weeks due to poor quality and lower arrivals.

NCDEX accredited warehouses chana stocks gained by 3914 tonnes to 83269 tonnes.

In Delhi spot market, chana remains unchanged at by 0 rupee to end at 3000 rupee per 100 kgs.