Chana dropped Rs 15 and settled at Rs 3358 per quintal on low consumer demand in ongoing winter season and on expected increase in supplies from the new season crop. Demand is low and arrivals from the fresh crop have started hitting spot markets. Arrivals are expected to pick up in next few days and will put pressure on the prices. Demand for chana usually goes down in winter on availability of fresh vegetables. According to the Farm Ministry area sown under Rabi pulses is down by 1% to 134.18 lakh hectares as compared to 135.21 lakh hectares in the same period previous year. Chana sowing till December 23rd 2011 is 4.35% down at 85.7 lakh hectares as compared to 89.6 lakh hectares in the same period previous year. Latest reports from Australia indicates a rise in production there by 15000 tonnes to 3.94 lakh tonnes in 2011-12. As per latest data from Ministry of Agriculture as on 2nd Dec, 2011 the sown area under Chana (Gram) crop is up by 2.03 lakh hectares at 75.95 lakh ha vs same period last year. In Delhi spot market, chana jump up by 3.45 rupee to end at 3458 rupee per 100 kgs. The volume was noted at 32120 lots. Support for chana is at 3342 below that could see a test of 3327. Resistance is now seen at 3386 above that could see a resistance of 3415.

Trading Ideas:

Chana trading range is 3327-3415.

Chana dropped on low consumer demand in ongoing winter season and on expected increase in supplies

Arrivals are expected to pick up in next few days and will put pressure on the prices

NCDEX accredited warehouses chana stocks dropped by 3 tonnes to 32781 tonnes.

In Delhi spot market, chana jump up by 3.45 rupee to end at 3458 rupee per 100 kgs.