Commodity Trading Tips for Chana by KediaCommodity

Ajay Kumar Kedia 27 August 2014

Chana Chana settled down -0.24% at 2856 as market sentiment about its output improved due to more-than-expected coverage despite this year's weak monsoon. Domestic demand for the pea is weak in local mandis as quality available in ware house stocks is of inferior variety as there is some moisture content in chickpea. India produced 9.88 million tons of chana up from 8.83 million ton a year ago, according to agriculture ministry's fourth advance estimates. 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. National Agricultural Cooperative Marketing Federation of India (NAFED) commenced sale of 37,500 tons of gram (chana) from its godown in various city of Rajasthan, according to the federation's website. NAFED has bought chana under price support scheme in the state as prices slumped below minimum support price (MSP) of Rs 3,100 per quintal thanks to record output in 2013-14. Chana arrivals stood at 10-15 trucks where as it usually is around 30-35 trucks. India total pulses sowing till Aug 22 stood at 9.26 million hectare as compared to 9.93 million hectare a year ago, government data showed. In Delhi spot market, chana dropped by -5.9 rupee to end at 2919.1 rupee per 100 kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -6.2% to settled at 127590 while prices down -7 rupee, now Chana is getting support at 2838 and below same could see a test of 2820 level, And resistance is now likely to be seen at 2876, a move above could see prices testing 2896.