Chana settled up 1.86% at 2843 tracking firmness in spot demand on lower level buying amid weak rainfall may hamper rabi sowing. The market sentiments would now start depending on the Monsoon progress towards North-West India in coming days. India's southwest monsoon, which accounts for 80% of the country's rainfall, is likely to be deficient this year, the Indian Metrological Department (IMD) said in its revised forecast amid possibility of El Nino. India's 65% agriculture is rain-fed.

The progress of southwest monsoon continued to be slow during the last 24 hours and rainfall deficit widens to 43% until Jul 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 output at record 9.79 million ton up from 8.83 million ton a year ago. As per the market sources, the total daily arrivals of Chana dropped to just 10 motors in from the average daily arrivals of 35 motors over last few weeks.

The prices also benefited from weak sowing trend of kharif pulses so far in the current year. The latest kharif data suggested that kharif pulses sowing has been completed in 7.50 lakh hectares as on 4 July 2014, down 59% from the last year in the same period. This has incited the chana traders to reduce their supplies in physical mandies with the anticipation of better demand in the coming days. technically market is under fresh buying as market has witnessed gain in open interest by 5.51% to settled at 159240, now Chana is getting support at 2808 and below same could see a test of 2774 level, And resistance is now likely to be seen at 2867, a move above could see prices testing 2892.

Trading Ideas:

Chana trading range for the day is 2774-2892.

Chana prices ended with gains tracking firmness in spot demand on lower level buying amid weak rainfall may hamper rabi sowing.

The market sentiments would now start depending on the Monsoon progress towards North-West India in coming days.

NCDEX accredited warehouses chana stocks dropped by 293 tonnes to 123800 tonnes.

In Delhi spot market, chana gained by 50 rupee to end at 2800 rupee per 100 kgs.