Chana settled up 0.49% at 2890 helped by bargain-buying, though ample supplies and weak demand kept the upside limited. Revival of monsoon and improvement in sowing of kharif pulses in the coming days is pressurising the prices of chana. Further, expectations of higher production too supported commodity prices downside. Chana arrival rose by 5-10 trucks to 20-25 trucks as compared to previous day. Southwest monsoon has revived and likely to remain active over most parts of the country for the next 10 days, which may boot kharif sowing operations further.

The southwest monsoon rains continued to remain active across the country for the fourth day in a row. Kharif sowing operations are in full swing in Maharashtra, Madhya Pradesh and Gujarat with the revival of rains and fears of drought are receding. 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.

The latest kharif data suggested that kharif pulses sowing has been completed in 7.50 lakh hectares as on 4 July 2014, down 59% from the last year in the same period. Pulses acreage fell to 1.34 million hectare until July 11 from 4.31 million hectare a year ago, showed government data. Technically market is under short covering as market has witnessed drop in open interest by -1.31% to settled at 159090 while prices up 14 rupee, now Chana is getting support at 2861 and below same could see a test of 2831 level, And resistance is now likely to be seen at 2911, a move above could see prices testing 2931.

Trading Ideas:

Chana trading range for the day is 2831-2931.

Chana prices gained helped by bargain-buying, though ample supplies and weak demand kept the upside limited.

Revival of monsoon and improvement in sowing of kharif pulses in the coming days is pressurising the prices of chana.

NCDEX accredited warehouses chana stocks dropped by 82 tonnes to 122336 tonnes.

In Delhi spot market, chana remains unchanged at by 0 rupee to end at 2850 rupee per 100 kgs.