Chana settled down -1.29% at 2755 on subdued demand for the pea from bulk consumers and increasing warehouse stocks. Domestic demand for the pea is very weak as the quality available in domestic market 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 output at record 9.79 million ton up from 8.83 million ton a year ago. According to the Ministry of Agriculture, sowing of kharif pulses as on 4th July stand at 750,000 ha against 2,184,000 ha. Sowing of Tur, Urad and Moong stand at 188,000 ha, 103,000 ha and 254,000 ha respectively. The 3rd Advance Estimates pegged total pulses output for 2013-14 at 19.6 mn tn, marginally lower from 19.8 mn tn earlier. There was a delay in the harvesting of the chana crop along with some crop damage in Madhya Pradesh, Rajasthan, Maharashtra and Andhra Pradesh. As per the data released by the ministry of Agriculture, area under Rabi Pulses stood at 161.9 lakh ha as against 152.65 lakh ha last year. Chana sowing was reported at 10.21 mn ha compared to 9.51 mn ha during the same period last year. Supplies of Chana since past one year has been ample as the country reaped bumper Chana output in 2012-13 season. In Delhi spot market, chana gained  by 7.65 rupee to end at 2707.65 rupee per 100 kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 3.47% to settled at 143310, now Chana is getting support at 2731 and below same could see a test of 2706 level, And resistance is now likely to be seen at 2794, a move above could see prices testing 2832.

Trading Ideas:

Chana trading range for the day is 2706-2832.

Chana prices dropped on subdued demand for the pea from bulk consumers and increasing warehouse stocks.

Domestic demand for the pea is very weak as the quality available in domestic market is of inferior variety.

NCDEX accredited warehouses chana stocks gained by 631 tonnes to 123743 tonnes.

In Delhi spot market, chana gained  by 7.65 rupee to end at 2707.65 rupee per 100 kgs.