Commodity Trading Tips for Chana by KediaCommodity

Ajay Kumar Kedia 17 July 2014

Chana Chana settled down -0.93% at 2862 on higher supplies from the major producing belts. However, the losses were capped by firm spot market demand on lower level buying amid weak rainfall may hamper rabi sowing. As per the market sources, the total daily arrivals of Chana dropped to just 10 motors in Delhi today from the average daily arrivals of 35 motors over last few weeks. The spot prices added Rs 25 per quintal today to trade at Rs 2550 per quintal. 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. Forecast of poor rainfall in Rajasthan could raise concerns for sowing in next season crop. 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. Pulses acreage fell to 1.34 million hectare until July 11 from 4.31 million hectare a year ago, showed government data. In Delhi spot market, chana dropped by -17.35 rupee to end at 2889.3 rupee per 100 kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -0.48% to settled at 157800 while prices down -27 rupee, now Chana is getting support at 2849 and below same could see a test of 2835 level, And resistance is now likely to be seen at 2884, a move above could see prices testing 2905.