Chana settled up 0.14% at 2889 on strong demand for the pea by bulk consumers and weak rains may hamper the rabi crop. Demand for the pulse during coming days is expected to remain good with the line up festivals in the month of August. 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. According to Australian Bureau of Agricultural and Resource Economics (ABARES) total acreage for the season is expected to be down by 30% to 356,000 hectares as compared to 507,000 hectares while production is expected to decline by 20% to 503,000 tons from 629,000 tons last year. 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 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. Delhi spot market, chana gained  by 41.25 rupee to end at 2906.65 rupee per 100 kgs. Technically market is under short covering as market has witnessed drop in open interest by -0.6% to settled at 158750 while prices up 4 rupee, now Chana is getting support at 2874 and below same could see a test of 2855 level, And resistance is now likely to be seen at 2913, a move above could see prices testing 2933.

Trading Ideas:

Chana trading range for the day is 2854-2932.

Chana prices surged on strong demand for the pea by bulk consumers and weak rains may hamper the rabi crop.

Demand for the pulse during coming days is expected to remain good with the line up festivals in the month of August.

NCDEX accredited warehouses chana stocks dropped by 96 tonnes to 123704 tonnes.

In Delhi spot market, chana gained  by 41.25 rupee to end at 2906.65 rupee per 100 kgs.