Commodity Trading Tips for Chana by KediaCommodity

Ajay Kumar Kedia 9 June 2014

Chana Chana settled down -1.59% at 2846 on subdued demand from bulk consumers and increasing warehouse stocks. Higher supplies coupled with subdued domestic demand is pressuring the prices of the chana. Domestic demand for the pea is weak as the crop available in local mandis is of inferior variety. 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. Chana arrivals in Delhi mandis fell by 10 trucks to 40 trucks compared to previous day. With Monsoon round the corner the prices will remain under pressure. Improved Monsoon prospects kept up hopes of better sowing for Kharif Pulses to begin soon. High stocks had kept further pressure on prices even as summer season demand started picking up gradually. The spot market cues suggests that higher supplies of around 30-40 thousand bags of new chana have been reported in the major producing states such as Madhya Pradesh, Maharashtra and Gujarat. Therefore, most of the chana processing companies prefer inferior quality of chana over average quality. Procurement of chana in Rajasthan by the NAFED was delayed by a couple of weeks due to poor quality and lower arrivals. In Delhi spot market, chana dropped by -38.45 rupee to end at 2800 rupee per 100 kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 1.62% to settled at 122220 while prices down -46 rupee, now Chana is getting support at 2823 and below same could see a test of 2800 level, And resistance is now likely to be seen at 2881, a move above could see prices testing 2916.