Chana dropped Rs 66 and settled at Rs 3708 per quintal as higher supplies from the new season crop in spot market weighed on sentiment. The country's chana production in 2011/12 is estimated to fall to 7.66 million tonnes from 8.22 million tonnes a year ago, the farm ministry said last month. Over 30 percent rise in chana prices during the arrival season has raised concerns over manipulation in prices and the government could take measures to control prices. According to Second Advance estimates, Pulses output is expected to fall by 5.26% to 17.29 mln tonnes as compared to 18.24 mln tonnes in 2010- 11. Chana production is expected to decline by 6.8% to 7.66 mln tonnes as compared to 8.22 million tonnes in the last year. As output is likely to decline, India's pulses imports in 2011-12 (Apr-Mar) may rise nearly 10% from 2.75 mln tn in the previous year. The total daily arrivals of chana were hovering at the levels of around 0.50 lakh bags in the entire major mandis against 3 lakh bags on last day. According to the Rajasthan farm department’s first advance estimates for Rabi crops, Chana output is estimated 7.8% lower at 14.75 lakh tonnes in 2011-12 seasons against 16 lakh tonnes in 2010-11. Traders mentioned that strong millers in the domestic market due to higher prices of imported pulses prompted the strong gains in chana. In Delhi spot market, chana fell down by -21.25 rupee to end at 3610.4 rupee per 100 kgs. The volume was noted at 115380 lots. Support for chana is at 3673 below that could see a test of 3637. Resistance is now seen at 3777 above that could see a resistance of 3845.

Trading Ideas:

Chana  trading range for the day is 3643-3851.

Chana dropped as higher supplies from the new season crop in spot market weighed on sentiment

Over 30% rise in chana prices during the arrival season has raised concerns over manipulation in prices

NCDEX accredited warehouses chana stocks dropped by 217 tonnes to 6227 tonnes.

In Delhi spot market, chana fell down by -21.75 rupee to end at 3610.4 rupee per 100 kgs.