Chana yesterday settled up 0.63% at 3035 on late short covering tracking firm spot demand after dropped weighed by timely start of sowing in many states, prospects of higher area under cultivation and weak local demand. Farmers have started sowing chana at some places in Karnataka, Andhra Pradesh and Madhya Pradesh. There are some concerns over a shift in acreage to wheat in Madhya Pradesh, but in other states the area under cultivation is likely to be higher than in the previous year. Some upside is seen in chana but the overall trend looks weak because stocks are high from the old crop and demand is not picking up as expected. India has raised the price the government must pay to farmers for buying next year's chana to 3,100 rupees per 100 kg from 3,000 rupees a year earlier. Chickpea is a rabi crop for which sowing starts in October. The key growing areas have received ample rainfall, which is expected to smoothen the sowing process. The Kharif pulses arrivals are being eyed and Moong and Urad supplies have started gaining pace in Rajasthan. Stockists demand is emerging in almost all ready pulses right now. The progress on the kharif pulses harvest front is impressive. As per latest release from Ministry of Agriculture, the acreage under pulses has gone up by 15.28% to 101.81 lakh hectares. Rabi Pulses output is likely to be 12.09 million tonnes, up 9.61% on the year. In Delhi spot market, chana dropped by -27 rupee to end at 3073.2 rupee per 100 kgs. Technically market is under fresh buying as market has witnessed gain in open interest by 3.8% to settled at 103400 while prices up 19 rupee, now Chana is getting support at 3009 and below same could see a test of 2982 level, And resistance is now likely to be seen at 3051, a move above could see prices testing 3066.

Trading Ideas:

Chana trading range for the day is 2982-3066.

Chana gained on late short covering tracking firm spot demand after dropped weighed by timely start of sowing in many states

Farmers have started sowing chana at some places in Karnataka, Andhra Pradesh and Madhya Pradesh.

NCDEX accredited warehouses chana stocks dropped by 569 tonnes to 70825 tonnes.

In Delhi spot market, chana dropped by -26.8 rupee to end at 3073.2 rupee per 100 kgs.