Chana gained Rs 30 and settled at Rs 3415 per quintal in the wake of fragile production estimates for the chana crop in the current season. Chana sowing in western Maharashtra state and southern Karnataka has been slow and could see a drop in acreage. Imports during current year might be lower which is supportive for the prices. Current weather conditions are supportive for crop which is weighing on market sentiments. Domestic demand for besan in ongoing wedding season is supportive for prices. As per latest release from Ministry of Agriculture, the area under chana crop has been lower at 83.55 lakh hectares as on 16th December 2011 against 86.36 lakh hectares in corresponding last year. This was mainly on the account of poor sowing in Maharashtra and Karnataka due to dry conditions. Moreover, traders mentioned that the total production of chana in the current year is likely to be estimated at around 60-62 lakh tonnes, down almost 14 lakh tonnes from the last year. In Delhi spot market, chana jump up by 72.35 rupee to end at 3422.35 rupee per 100 kgs. The volume was noted at 133640 lots. Support for chana is at 3371 below that could see a test of 3328. Resistance is now seen at 3451 above that could see a resistance of 3488.

Trading Ideas:

Chana trading range is 3328-3488.

Chana gained in the wake of fragile production estimates for the chana crop in the current season

Chana sowing in western Maharashtra state and southern Karnataka has been slow and could see drop in acreage

NCDEX accredited warehouses chana stocks dropped by 873 tonnes to 58646 tonnes.

In Delhi spot market, chana jump up by 72.35 rupee to end at 3422.35 rupee per 100 kgs.