Commodity Trading Tips for Chana by KediaCommodity

Ajay Kumar Kedia 19 August 2014

Chana Chana settled up 0.69% at 2909 on robust demand for the pea by bulk consumers and on speculation weak rainfall may hamper rabi sowing. Domestic demand for chana is very strong on festivals and also rainy season starts demand for leafy vegetables declines. Chana prices may also be supported on weak southwest monsoon is pressuring kharif sowing. India total pulses sowing stood at 8.74 million hectare as compared to 9.59 million hectare a year ago, government data showed. 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. The southwest monsoon has again turned weak over a large portion of country and on Wednesday the precipitation stood at 6.7 mm versus normal of 9.3 mm. However, the overall rainfall deficit remained unchanged at 18% below normal until Aug 13. As of now 55% area of the country has received normal rains and 3% scanty rains while 42% area is still under deficient category, India Meteorological Department (IMD) data showed. With traders and stockists releasing a majority of substandard quality chana stock lying with them in the past one month, domestic chana inventory has declined. In Delhi spot market, chana dropped by -31.7 rupee to end at 2912.5 rupee per 100 kgs. Technically market is under short covering as market has witnessed drop in open interest by -0.78% to settled at 166630 while prices up 20 rupee, now Chana is getting support at 2889 and below same could see a test of 2869 level, And resistance is now likely to be seen at 2924, a move above could see prices testing 2939.