Chana settled down -0.24% at 2874 on weak demand from millers and higher-than-expected supplies in the spot market. The arrivals in Delhi continued to be steady and traders are eying sowing of Kharif pulses. The total Chana arrivals stood at 35trucks at Delhi market today. The overall demand is likely to be steady in the commodity ahead of the start of the festive season. Kharif pulses sowing progress is going to be the key for the ready pulses market. 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.

Moreover, weak rainfall so far in the major chana growing states such as Rajasthan and Madhya Pradesh will discourage fresh sowing in the current year. The latest kharif data suggested that kharif pulses sowing have been completed in 2.15 million hectares as on 19 July, 2014, down 32% from the last year in the same period. As per the second advance estimates of Indian government, the total chana production in 2013-14 is estimated at 9.76 million tonnes against 8.83 million tonnes due to higher sowing acreage coupled with favourable crop conditions in major producing states.

In Delhi spot market, chana dropped by -34.55 rupee to end at 2915.45 rupee per 100 kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -14.92% to settled at 118250 while prices down -7 rupee, now Chana is getting support at 2848 and below same could see a test of 2821 level, And resistance is now likely to be seen at 2896, a move above could see prices testing 2917.

Trading Ideas:

Chana trading range for the day is 2821-2917.

Chana prices dropped on weak demand from millers and higher-than-expected supplies in the spot market.

The arrivals in Delhi continued to be steady and traders are eying sowing of Kharif pulses.

NCDEX accredited warehouses chana stocks dropped by 171 tonnes to 121567 tonnes.

In Delhi spot market, chana dropped by -34.55 rupee to end at 2915.45 rupee per 100 kgs.