Commodity Trading Tips for Chana by KediaCommodity

Ajay Kumar Kedia 12 June 2014

Chana Chana settled flat as prices rebounded on buying at lower levels tracking firm spot demand, though ample supplies capped the upside. The spot market cues suggests that higher supplies of around 50-60 thousand bags of new chana have been reported in the major producing states such as Madhya Pradesh, Maharashtra and Gujarat. Moreover, fresh supplies of Moong in the major mandies of Uttar Pradesh will reduce the millers demand in local mandies. The spot and futures prices will also be discouraged by steady supplies of inferior quality of chana in Madhya Pradesh. Most of the chana processing companies prefer inferior quality of chana over average quality. This has witnessed weak demand of new chana in local mandies. 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. Domestic demand for the pea is weak as the crop available in local mandis is of inferior variety. Agriculture ministry has estimated chana output at record 9.79 million ton up from 8.83 million ton a year ago. The government agencies have bought in a lot of produce at the MSP of Rs 3100 in Rajasthan. Improved Monsoon prospects kept up hopes of better sowing for Kharif Pulses to begin soon. In Delhi spot market, chana gained by 5.45 rupee to end at 2750 rupee per 100 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 7.58% to settled at 168960 while prices up 1 rupee, now Chana is getting support at 2787 and below same could see a test of 2775 level, And resistance is now likely to be seen at 2817, a move above could see prices testing 2835.