Chana on weekly basis we have seen that prices has dropped by 10.08% due to sluggish domestic demand, higher area under summer-sown pulses and favourable weather.

· Ample rains in the country have raised the prospects of better chana sowing.

· Chana is a Rabi crop sown during the winter and farmers depend on rains to moisten the land for sowing.

· India's 2012/13 pulses production is estimates at 18.45 million tonnes.

· Healthy arrivals in Delhi market are also affecting sentiments and spot prices continue to linger around their two-year lows.

· The arrivals in Delhi's Lawrence Road mandi are 55 trucks after coming in at 65 trucks in the last session.

· The supplies had averaged around 30 trucks in the last week.

· The total output of Chana is likely to be 8.57 million tonnes in the current year.

· This marks a gain of 11.29% compared to the last year's production of 7.57 million tonnes.

· The traders are eying moong arrivals to start from August end from Rajasthan.

· A continued decent spell of rainfall in Maharashtra and Southern states is also auguring good from the point of view of other key pulses like Tur and Urad and not much of an upside is seen in Chana prices even as the spot rates continue to get good support at their two year lows.

· As per latest release from Ministry of Agriculture, the total sowing acreage of kharif pulses is are reported at 25.96 lakh hectares, up almost 99% from the last year.

· Special Margin of 5% on the Short side will be imposed in all running contracts and yet to be launched contract in Chana with effect from beginning of day Saturday, July 27, 2013

OUTLOOK: Chana dropped almost -10% this week may see bounce on higher margin levied and short covering can add fuel to fire but overall outlook remain weak and bearish for support till 2500 level again as fundamentals remain weak still.