Chana edged up due to improvement in demand in the physical market, although rising supplies from the new crop kept a lid on gains. The wedding season, when demand for chick peas goes up, has started and will last until July.  Chana output is expected to be 8.49 million tonnes in 2012/13 as per the agriculture ministry's third advance estimate as against 7.70 million tonnes a year earlier. Chana arrivals have edged up towards their seasonal highs in Delhi. This has come as a welcome relief after a choppy trend in supplies during last week. The average daily supplies were around 25-30 trucks during last week as weak prices took their toll. Farmers did not show an active enthusiasm in bringing their produce to the mandies. The wedding season also ensured less participation. However, the spot prices have mostly trended up after tanking near their 15 month low of Rs 3330 last week and could stay supported from hereon even as supplies enter their peak yet again. The arrivals in Delhi's Lawrence Road mandi were 60 trucks today. The total output of Chana is likely to be 8.57 million tonnes in the current year. This marks a gain of 11.29% compared to the last year's production of 7.57 Million tonnes. Rabi Pulses output is likely to be 12.09 million tonnes, up 9.61% on the year. Higher supply of new crop and higher production estimates are putting pressure on chana prices. However, improvement in demand from stockists may support prices at lower levels. Overall output in the current season is comparatively higher. Higher supply of the new crop from major chana producing states such as Madhya Pradesh, Rajasthan and Maharashtra have been pulling down market prices. In Delhi spot market, chana fell down by -18.35 rupee to end at 3373.55 rupee per 100 kgs. The volume was noted at 46100 lots. Support for chana is at 3373 below that could see a test of 3356. Resistance is now seen at 3408 above that could see a resistance of 3426.

Trading Ideas:

Chana  trading range for the day is 3356-3426.

Chana edged up due to improvement in demand in the physical market, although rising supplies from the new crop kept a lid on gains.

The wedding season, when demand for chick peas goes up, has started and will last until July.

NCDEX accredited warehouses chana stocks gained by 6865 tonnes to 105754 tonnes.

In Delhi spot market, chana fell down by -18.35 rupee to end at 3373.55 rupee per 100 kgs.