Chana dropped Rs 34 and settled at Rs 3733 per quintal on rising arrivals in spot markets and profit taking following the sharp rise in the prices in the previous two weeks. Arrivals have started in the spot markets in Madhya Pradesh in small quantities, and are likely to rise in the next few days. Expected fall in production in Chana and overall Pulses was reported as per 2nd Advanced Estimates. Pulses output is expected to fall by 5.26% to 17.29 mln tonnes vs 18.24 mln tonnes in 2010-11. Chana production is expected to fall by 6.8% to 7.66 mln tonnes as compared to 8.22 mln tonnes last year. Lower acreage contributed for this fall as per reports (Chana acreage reportedly fell by ~4% to 89.57 lakh ha vs 93.41 lakh ha same period last year. As per Rajasthan farm department’s first advance estimates for Rabi crops, Chana output is estimated down 7.8% at 14.76 lakh tonnes in 2011-12 season vs 16 lakh tonnes in 2010-11. Output in Maharashtra in 2011-12 is seen down 42% at 7.5 lakh tn, while Karnataka’s 2011-12 output is seen at 4.98 lakh tn compared to 6 lakh tn last year. The total daily arrivals of chana were hovering at the levels of around 2 lakh bags in the entire major mandis against 1.85 lakh bags on last day. In Delhi spot market, chana fell down by -72.55 rupee to end at 3738.15 rupee per 100 kgs. The volume was noted at 128800 lots. Support for chana is at 3689 below that could see a test of 3646. Resistance is now seen at 3779 above that could see a resistance of 3826.

Trading Ideas:

Chana  trading range for the day is 3646-3826.

Chana dropped on rising arrivals in spot markets and profit taking following the sharp rise in the prices

Expected fall in production in Chana and overall Pulses was reported as per 2nd Advanced Estimates

NCDEX accredited warehouses chana stocks dropped by 377 tonnes to 13898 tonnes.

In Delhi spot market, chana fell down by -72.55 rupee to end at 3738.15 rupee per 100 kgs.