Chana settled down -0.65% at 3050 on subdued demand for the pea by bulk consumers amid higher arrivals of the pea in domestic market as well as rising ware house stocks. The market sources suggests that heavy buying by government agencies in major producing states such as Maharashtra and Rajasthan provided some support to chana prices in local mandies. The government agencies are procuring the chana at minimum support price of Rs 3100 per quintal. 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. 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. In Delhi spot market, chana remains unchanged at by 0 rupee to end at 3000 rupee per 100 kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 0.22% to settled at 158400 while prices down -20 rupee, now Chana is getting support at 3037 and below same could see a test of 3024 level, And resistance is now likely to be seen at 3073, a move above could see prices testing 3096.

Trading Ideas:

Chana trading range for the day is 3024-3096.

Chana prices dropped on subdued demand for the pea by bulk consumers amid higher arrivals in domestic market as well as rising ware house stocks.

The government agencies are procuring the chana at minimum support price of Rs 3100 per quintal.

NCDEX accredited warehouses chana stocks gained by 2170 tonnes to 85439 tonnes.

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