Chana settled down -0.75% at 2788 as traders avoided fresh purchases on fears that the government may impose further stock limits to curb rising prices coupled with revival of the monsoon. Prices gained earlier on below normal rains which may affect the kharif pulses output this year coupled with demand emerging at lower levels. Stockiest are entering in the market on ideas that these are very attractive levels given the supply squeeze seen in the markets every year around late December till mid-February. Moreover, weak rainfall so far in the major chana growing states such as Rajasthan and Madhya Pradesh will discourage fresh sowing in the current year. According to the Ministry of Agriculture, sowing of kharif pulses as on 26th June stand at 430,000 ha against 1,362,000 ha. CCEA increased the MSP of tur and urad by Rs. 50 to Rs. 4,350 each, while the MSP of moong was increased by Rs. 100 to Rs. 4,600/qtl. 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 some crop damage in Madhya Pradesh, Rajasthan, Maharashtra and Andhra Pradesh. 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. Chana would however, continue to retain the tag of largest produced pulse crop in India holding a lion’s share of 48-50 percent in total Indian Pulses production. Technically market is under long liquidation as market has witnessed drop in open interest by -2.73% to settled at 138460 while prices down -21 rupee, now Chana is getting support at 2763 and below same could see a test of 2739 level, And resistance is now likely to be seen at 2826, a move above could see prices testing 2865.

Chana trading range for the day is 2740-2866.

Chana dropped again as traders avoided fresh purchases on fears that the government may impose further stock limits to curb rising prices

Prices gained earlier on below normal rains which may affect the kharif pulses output this year coupled with demand emerging at lower levels.

According to the Ministry of Agriculture, sowing of kharif pulses as on 26th June stand at 430,000 ha against 1,362,000 ha.

In Delhi spot market, chana remains unchanged at by 0 rupee to end at 2700 rupee per 100 kgs.

SELL CHANA AUG @ 2840 SL 2880 TGT 2790-2760.NCDEX