Chana settled down -0.34% at 2970 due to ample supplies and as delayed rains boost prospects of rabi sowing. Chana prices are ruling below minimum support price (MSP) of Rs 3,100 per quintal fixed by the government mainly due to bumper output of 9.88 million ton in 2013-14 up from 8.83 million ton a year ago. Local market received 30 truckloads of chana down from 45 truck loads a day earlier. Dal millers are buying chana to meet the demand of besan (chana flour) for the ensuing festive season. According to the Ministry of Agriculture, sowing of kharif pulses as on 14th August stands at 8.74 mn ha as against 9.55 mn ha last year. Sowing of Tur, Urad and Moong stands at 3.16 mn ha, 2.16 mn ha and 1.87 mn ha respectively. CCEA increased the MSP of tur and urad by Rs.50 to Rs.4,350 each, while the MSP of moong was increased by Rs.100 to Rs.4,600/qtl. 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 Ministry of Agriculture, area under Rabi Pulses 2013-14 stood at 161.9 lakh ha as against 152.65 lakh ha last year. In Delhi spot market, chana gained  by 22.8 rupee to end at 3000 rupee per 100 kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -2.35% to settled at 150360 while prices down -10 rupee, now Chana is getting support at 2954 and below same could see a test of 2937 level, And resistance is now likely to be seen at 2992, a move above could see prices testing 3013.

Trading Ideas:

Chana trading range for the day is 2937-3013.

Chana prices ended with losses due to ample supplies and as delayed rains boost prospects of rabi sowing.

Chana prices are ruling below minimum support price (MSP) of Rs 3,100 per quintal fixed by the government.

Local market received 30 truckloads of chana down from 45 truck loads a day earlier.

In Delhi spot market, chana gained  by 22.8 rupee to end at 3000 rupee per 100 kgs.