Chana settled down -1.18% at 2935 due to some improvement in the monsoon rains though a pickup in local demand and limited supplies limited the downside. But with domestic demand picking up ahead of the Festival season, traders are not expecting too much fall in rates. Chana prices are ruling below minimum support price (MSP) of Rs 3,100 per quintal fixed by the government mainly due to bumper output of 9.88 million ton in 2013-14 up from 8.83 million ton a year ago. Local market received 30 truckloads of chana down from 45 truck loads a day earlier. Dal millers are buying chana to meet the demand of besan (chana flour) for the ensuing festive season. According to the Ministry of Agriculture, sowing of kharif pulses as on 14th August stands at 8.74 mn ha as against 9.55 mn ha last year. Sowing of Tur, Urad and Moong stands at 3.16 mn ha, 2.16 mn ha and 1.87 mn ha respectively. CCEA increased the MSP of tur and urad by Rs.50 to Rs.4,350 each, while the MSP of moong was increased by Rs.100 to Rs.4,600/qtl. The 3rd Advance Estimates pegged total pulses output for 2013-14 at 19.6 mn tn, marginally lower from 19.8 mn tn earlier. There was a delay in the harvesting of the chana crop along with some crop damage in Madhya Pradesh, Rajasthan, Maharashtra and Andhra Pradesh. In Delhi spot market, chana dropped  by -40 rupee to end at 2960 rupee per 100 kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -2.89% to settled at 146020 while prices down -35 rupee, now Chana is getting support at 2906 and below same could see a test of 2876 level, And resistance is now likely to be seen at 2975, a move above could see prices testing 3014.

Trading Ideas:

Chana trading range for the day is 2876-3014.

Chana prices dropped due to some improvement in the monsoon rains though a pickup in local demand limited the downside.

Chana prices are ruling below minimum support price (MSP) of Rs 3,100 per quintal fixed by the government.

NCDEX accredited warehouses chana stocks gained by 140 tonnes to 117431 tonnes.

In Delhi spot market, chana dropped  by -40 rupee to end at 2960 rupee per 100 kgs.