Chana settled up 1.06% at 2855 on the back of surging demand in spot markets against restricted arrivals from the major producing belts. Further, concerns over production of summer-sown pulses due to a delay in the arrival of monsoon rains too supported chana prices. 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 output at record 9.79 million ton up from 8.83 million ton a year ago. The spot market cues suggests that higher supplies of around 50-40-45 thousand bags of new chana have been reported in the major producing states such as Madhya Pradesh, Maharashtra and Gujarat. Moreover, fresh supplies of Moong in the major mandies of Uttar Pradesh will reduce the millers demand in local mandies. The spot and futures prices also discouraged by steady supplies of inferior quality of chana in Madhya Pradesh. Most of the chana processing companies prefer inferior quality of chana over average quality. This has witnessed weak demand of new chana in local mandies. Sowing prospects for the summer crop improved with the arrival of monsoon rains over the Kerala coast limited the upside. Prices are trading at the level which is way below the MSP of chana as fixed by the government. In Delhi spot market, chana dropped  by -42.7 rupee to end at 2782.3 rupee per 100 kgs. Technically market is under short covering as market has witnessed drop in open interest by -2.22% to settled at 168040 while prices up 30 rupee, now Chana is getting support at 2821 and below same could see a test of 2788 level, And resistance is now likely to be seen at 2874, a move above could see prices testing 2894.

Trading Ideas:

Chana trading range for the day is 2788-2894.

Chana ended with gains on the back of surging demand in spot markets against restricted arrivals from the major producing belts.

Further, concerns over production of summer-sown pulses due to a delay in the arrival of monsoon rains too supported chana prices.

NCDEX accredited warehouses chana stocks gained by 91 tonnes to 119877 tonnes.

In Delhi spot market, chana dropped  by -42.7 rupee to end at 2782.3 rupee per 100 kgs.