Commodity Trading Tips for Chana by KediaCommodity

Ajay Kumar Kedia 28 July 2014

Chana Chana settled up 0.71% at 2856 tracking firmness in spot demand on falling supplies in local mandis. Chana arrivals at to 15 trucks whereas it usually around 40-45 trucks per day. 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 record output at 9.79 million ton up from 8.83 million ton a year ago, which could revised downwards. Sources said that monthly chana consumption has also been increased from the level of 3-3.5 lakh bags to reach 4-4.5 lakh bags due to excessive buying by millers at lower levels. The prices will also get strong boost 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 21.50 lakh hectares as on 17 July 2014, down 32% from the last year in the same period. 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. As per the second advance estimates of Indian government, the total chana production in 2013-14 is estimated at 9.76 million tonnes against 8.83 million tonnes due to higher sowing acreage coupled with favourable crop conditions in major producing states. In Delhi spot market, chana gained by 31.75 rupee to end at 2869.6 rupee per 100 kgs. Technically market is under short covering as market has witnessed drop in open interest by -3.04% to settled at 146600, now Chana is getting support at 2836 and below same could see a test of 2817 level, And resistance is now likely to be seen at 2868, a move above could see prices testing 2881.