Chana dropped Rs 19 and settled at Rs 4135 per quintal on weak demand in spot markets, with a decline in other agro-commodities also hurting sentiment. India's chana output is estimated to fall to 7.4 million tonnes in the current season from 8.22 million tonnes in previous year. Most Indian farm commodity futures fell, tracking broader commodities markets, as investors worried about the impact of the euro zone debt crisis on global demand. The government usually buys farm produce through its agencies from farmers at pre-agreed rates, known as minimum support prices, to help avoid distress sale. India's total pulses consumption of more than 20 million tonnes far surpassed its total 2011/12 harvest of an estimated 17.02 million tonnes. The supply gap is met through imports from countries such as Myanmar, Australia and Canada. The total daily arrivals of chana were hovering at the levels of around 1.50 lakh bags in the entire major mandis against 1.40 lakh bags on last day. Lower acreage contributed for this fall as per reports. 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. In Delhi spot market, chana fell down by -32.35 rupee to end at 4100 rupee per 100 kgs.. The volume was noted at 121650 lots. Support for chana is at 4069 below that could see a test of 4002. Resistance is now seen at 4196 above that could see a resistance of 4256.

Trading Ideas:

Chana trading range for the day is 4002-4256.

Chana fell on weak demand in spot markets, with a decline in other agro-commodities also hurting sentiment

India's chana output is estimated to fall to 7.4 mln tns in the current season from 8.22 mln tns in previous year

NCDEX accredited warehouses chana stocks gained by 348 tonnes to 76781 tonnes.

In Delhi spot market, chana fell down by -32.35 rupee to end at 4100 rupee per 100 kgs.