Commodity Trading Tips for Chana by KediaCommodity

ChanaChana settled down -1.33% at 2896 on subdued demand for the pea by bulk consumer due to quality issue. Domestic demand for the pea is weak in local mandis as quality available in ware house stocks is of inferior variety as there is some moisture content in chickpea. 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. Chana arrivals were steady at 10-15 trucks as compared to previous day. 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. 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. In Delhi spot market, chana dropped by -28.4 rupee to end at 2931.6 rupee per 100 kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -4.07% to settled at 140080, now Chana is getting support at 2875 and below same could see a test of 2855 level, And resistance is now likely to be seen at 2923, a move above could see prices testing 2951.

Trading Ideas:

Chana trading range for the day is 2855-2951.

Chana prices ended with losses on subdued demand for the pea by bulk consumer due to quality issue.

Chana was sown over an area of 10.21 million hectare compared to 9.5 million hectare a year ago.

NCDEX accredited warehouses chana stocks dropped by 291 tonnes to 117140 tonnes.

In Delhi spot market, chana dropped by -28.4 rupee to end at 2931.6 rupee per 100 kgs.