Commodity Trading Tips for Chana by KediaCommodity

Ajay Kumar Kedia 12 September 2014

Chana Chana settled down -0.53% at 2809 tracking weakness in spot demand on better rains helping kharif sowing. Pressure also seen on hopes of bumper production from the winter-sown crop due to good rainfall in the top producing state of Madhya Pradesh. Sowing of kharif pulses stood at 9.72 million hectare, up by 2% compared to previous week and down by 6% as compared to last year, government data showed. 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 record output at 9.79 million ton up from 8.83 million ton a year ago, which could revised downwards. Chana arrivals were steady at 15-20 trucks as compared to previous day. The 4th Advance Estimates pegged total pulses output for 2013-14 at 19.27 mn tn, up from 18.34 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. Also there is disparity of Rs.362/qtl for importing of chickpea from Australia. This may slow down import of chickpea from Australia to India. Domestic demand for chickpea is weak in local mandis as chana available is of inferior quality. In Delhi spot market, chana dropped by -19.4 rupee to end at 2900.3 rupee per 100 kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 7.65% to settled at 135430 while prices down -15 rupee, now Chana is getting support at 2785 and below same could see a test of 2761 level, And resistance is now likely to be seen at 2832, a move above could see prices testing 2855.