Chana settled up by 0.2% at 4592 due to thin supplies from the major producing areas against pickup in demand at the spot market. Further, deficient rain in August and forecast of below normal monsoon rains in September coupled with expensive imports also supported chana prices' uptrend. With new crop arrivals still some time away in India, some more firmness cannot be ruled out. With favorable weather condition and increased MSP Tur farmers started early sowing and area was expected to increase in the beginning. But deficit rainfall started affecting production. As per the latest Ministry of Agriculture report, all India Tur sowing area stood at 34.30 Lakh ha which is around 2% higher than last year's 33.58 Lakh ha at the same period. Pulses import may cross 50 lakh tons in 2015-16 as per estimates. As per latest Govt reports, area under Kharif Pulses has risen to 108.37 lakh ha as on 4th Sept vs 97.56 lakh ha same period last year. Above normal rains in Central and South India have improved sowing. Import of pulses increased to fulfill domestic consumption after a fall in pulses production. India consumes around 240 lakh ton pulses annually but in 2014-15 pulses production has fallen to 173 lakh ton from 193 lakh tons in 2013-14 due to unfavorable weather indicating more import in coming months. In Delhi spot market, chana dropped by -12.85 rupee to end at 4721.75 rupee per 100 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 3.11% to settled at 133860 while prices up 9 rupee, now Chana is getting support at 4520 and below same could see a test of 4449 level, And resistance is now likely to be seen at 4676, a move above could see prices testing 4761.

Trading Ideas:

Chana trading range for the day is 4449-4761.

Chana prices gained due to thin supplies from the major producing areas against pickup in demand at the spot market.

Further, deficient rain in August and forecast of below normal monsoon rains in September coupled with expensive imports also supported prices.

NCDEX accredited warehouses chana stocks dropped by 982 tonnes to 95712 tonnes.

In Delhi spot market, chana dropped by -12.85 rupee to end at 4721.75 rupee per 100 kgs.