Commodity Trading Tips for Chana by KediaCommodity

Ajay Kumar Kedia 20 June 2014

Chana Chana settled down -1.02% at 2826 as poor quality of arrivals in central India dragged spot prices down. Prices also seen under pressure on account of weak demand coupled with ample supplies and higher stocks on the exchange warehouses. According to the Ministry of Agriculture, sowing of kharif pulses has commenced across the country. Sowing of tur and urad as on 12th June stand at 26,500 ha and 17,300 ha respectively. The 3rd Advance Estimates pegged total pulses output for 2013-14 at 19.6 mn tn, marginally lower from 19.8 mn tn earlier. There was a delay in the harvesting of the chana crop along with crop damage in Madhya Pradesh, Rajasthan, Maharashtra and Andhra Pradesh due to unseasonal rainfall as well as hailstorms. As per the data released by the ministry of Agriculture, area under Rabi Pulses stood at 161.9 lakh ha as against 152.65 lakh ha last year. Chana sowing was reported at 10.21 mn ha compared to 9.51 mn ha during the same period last year. Supplies of Chana since past one year has been ample as the country reaped bumper Chana output in 2012-13 season. For 2013-14 too, the government in their third advance estimates has projected record output of at 9.9 mn tonnes in the Rabi season. According to India Pulses and Grains Association, Apr-Dec’13 stood at import 2.4 mn tn vs 2.8 mn tn last year. In Delhi spot market, chana gained by 5.65 rupee to end at 2787.95 rupee per 100 kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -0.11% to settled at 168670, now Chana is getting support at 2803 and below same could see a test of 2782 level, And resistance is now likely to be seen at 2861, a move above could see prices testing 2898.