Chana yesterday settled down -1.56% at 3091 weighed by good progress in the sowing of summer pulses due to ahead of schedule and ample monsoon rains. Kharif pulses sowing is progressing well and it is before time in many areas because of sufficient rainfall. Chana output is expected to be 8.49 million tonnes in 2012/13 according to the agriculture ministry's third advance estimate, as against 7.70 million tonnes a year earlier. Chana prices are not holding up amid a dull activity in the ready market. The arrivals in Delhi's Lawrence Road mandi are 30 trucks as compared to 30 trucks in last session. Meanwhile, there are some concerns lingering on the pulses sowing in Maharashtra in select pockets. The demand is moderate in other pulses like Tur and Masur. The spot prices are off their two-year lows but the commodity is down around 20% on a year ago basis as well. 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. Rabi Pulses output is likely to be 12.09 million tonnes, up 9.61% on the year. Good rains in Central and North-West India kept trend weak for Pulses as rains have been favorable for sowing of Tur and Urad. With demand too getting adversely affected due to rains in most parts of India. Higher supply of new crop and higher production estimates are putting pressure on chana prices. However, improvement in demand from stockists may support prices at lower levels. Now Chana is getting support at 3073 and below same could see a test of 3054 level, And resistance is now likely to be seen at 3124, a move above could see prices testing 3156.

Trading Ideas:

Chana trading range for the day is 3056-3158.

Chana fell weighed by good progress in the sowing of summer pulses due to ahead of schedule and ample monsoon rains.

Higher supply of new crop and higher production estimates are putting pressure on chana prices.

NCDEX accredited warehouses chana stocks gained by 1012 tonnes to 137893 tonnes.

In Delhi spot market, chana dropped by -43.2 rupee to end at 3106.8 rupee per 100 kgs.