Commodity Trading Tips for Chana by KediaCommodity

Ajay Kumar Kedia 14 August 2014

Chana Chana settled up 1% at 2932 on expectation of higher demand during the coming festive season. Higher imports, weak arrival and strong buying support from millers too supported further upside in chana prices. Quality available in ware house stocks is of inferior variety as there is some moisture content in chickpea. 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 market sources suggested that favourable rainfall in Madhya Pradesh, Uttar Pradesh and Rajasthan from the last two days will encourage the timely harvesting of kharif crop and also provide better conditions for chana sowing in the rabi season. However, latest data of Ministry of Agriculture stated that kharif pulses sowing declined by almost 18% so far in the current year to reach 67.19 lakh hectares due to delay monsoon in Maharashtra and Andhra Pradesh. This has impacted the new sowing of Urad and Tur crop so far. The market sources suggested that total stocks of around 70-80 lakh tonnes of chana have been reported in local mandies and these stocks can easily meet the chana requirement in the current season. In Delhi spot market, chana gained by 3.3 rupee to end at 2941.45 rupee per 100 kgs. Technically market is under short covering as market has witnessed drop in open interest by -3.12% to settled at 167320 while prices up 29 rupee, now Chana is getting support at 2902 and below same could see a test of 2871 level, And resistance is now likely to be seen at 2951, a move above could see prices testing 2969.