Chana settled down -2.04% at 2788 on weak demand for the pea by bulk consumers and rising ware house stocks. Demand for the pea is very poor local mandis which will pressurise the prices of chana. Demand for the pea is weak as quality available in domestic market is of inferior variety. 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, which could revised downwards. The arrivals in Delhi continued to be steady but the overall quality of supplies remains poor. The government agencies have bought in a lot of produce at the MSP of Rs 3100 in Rajasthan. Improved Monsoon prospects kept up hopes of better sowing for Kharif Pulses to begin soon. High stocks had kept further pressure on prices even as summer season demand started picking up gradually. Government procurement has been started in Madhya Pradesh, Gujarat and Rajasthan in small quantities so far government has purchased 180 tons against the target of 2 million tons. In Delhi spot market, chana dropped  by -72 rupee to end at 2728 rupee per 100 kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 12.94% to settled at 138030, now Chana is getting support at 2747 and below same could see a test of 2716 level, And resistance is now likely to be seen at 2824, a move above could see prices testing 2870.

Trading Ideas:

Chana trading range for the day is 2720-2874.

Chana ended with losses on weak demand for the pea by bulk consumers and rising ware house stocks.

Demand for the pea is very poor local mandis which will pressurise the prices of chana.

NCDEX accredited warehouses chana stocks gained by 184 tonnes to 118488 tonnes.

In Delhi spot market, chana dropped  by -72 rupee to end at 2728 rupee per 100 kgs.