Chana settled flat as improved rains boosted hopes of better sowing and aided growth of the kharif pulses. Selling is seen in chana futures as revival in rains have raised hopes of higher sowing. Farmers completed sowing of kharif pulses on 9.77 million hectares by Aug. 30, down from 10.42 million hectares a year earlier. Traders feel rates had fallen significantly over last few weeks and with the Festive season arriving, domestic demand picked up in the mandis. Improved rainfall activities in Central North-West India kept pressurizing the market sentiments for Pulses. Rains have reportedly resulted in slight improved sowing prospects for Tur and Urad. Long term looks up as overall Monsoon still down amidst an overall lower sowing reports for Pulses Rains in MP and AP could improve sowing prospects for Urad and Tur which have been low so far. Monsoon progress this month would be important not just for determining Pulses sentiment but also the Agri market as a whole. Further delay could affect the production prospects for the Kharif crops. As per latest reports from Ministry of Agriculture, there has been a pick up in Pulses sowing to 72.79 lakh ha as on 3rd Aug, 2012 vs 62.99 lakh ha a week back. In Delhi spot market, chana fell down by -49.05 rupee to end at 4838.45 rupee per 100 kgs. The volume was noted at 60530 lots. Support for chana is at 4821 below that could see a test of 4802. Resistance is now seen at 4867 above that could see a resistance of 4894.

Trading Ideas:

Chana  trading range for the day is 4802-4894.

Chana settled flat as improved rains boosted hopes of better sowing and aided growth of the kharif pulses.

Farmers completed sowing of kharif pulses on 9.77 million hectares by Aug. 30, down from 10.42 million hectares

NCDEX accredited warehouses chana stocks dropped by 217 tonnes to 50889 tonnes.

In Delhi spot market, chana fell down by -49.05 rupee to end at 4838.45 rupee per 100 kgs.