Commodity Trading Tips for Chana by Kedia Commodity

ChanaChana yesterday settled down -3.97% at 2587 due to strong arrivals of imported chana at major mandies along with weak demand from millers. As per market sources, steady arrivals of imported chana at Mumbai port prompted strong selling in domestic market. The spot prices of Australia Chana shrugged off by almost Rs 300 per quintal in the last week. This is mainly due to strong chana production estimates in Australia. On the demand side, fragile demand of chana by millers due to sturdy kharif pulses sowing and possibility of weak demand during the festival season of August- October period will encourage further selling in both spot and futures market. As per latest release from Ministry of Agriculture, the total sowing acreage of kharif pulses as on 26th July 2013 is reported at 73.62 lakh hectares, up almost 86% from the last year. This is mainly due to strong sowing of Tur and Urad in Maharashtra. 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. Some talk is emerging about moong crop in Karnataka getting affected. Market data suggested that favourable rainfall in the major chana producing states such as Maharashtra and Madhya Pradesh will facilitate the better sowing conditions for chana crop in the current year. In Delhi spot market, chana dropped by -43 rupee to end at 2806.7 rupee per 100 kgs. Now Chana is getting support at 2549 and below same could see a test of 2512 level, And resistance is now likely to be seen at 2662, a move above could see prices testing 2738.

Trading Ideas:

Chana trading range for the day is 2512-2738.

Chana ended lower due to strong arrivals of imported chana at major mandies along with weak demand from millers.

Strong chana liquidation by stockiest due to some quality concerns might also lead to some selling pressure in market.

NCDEX accredited warehouses chana stocks dropped by 850 tonnes to 152754 tonnes.

In Delhi spot market, chana dropped by -43.35 rupee to end at 2806.65 rupee per 100 kgs.