Chana dropped Rs 32 and settled at Rs 4455 per quintal due to profit
booking though downside was limited helped by the negative impact of
poor monsoon rains on summer-sown pulses. As per latest data release by
Ministry of Agriculture, the total sowing acreage of pulses as on 28th
June 2012 reported at 3.90 lakh hectares , down 34% from the last year
in the same period. This was mainly due to deficit rainfall in major
producing states so far in the current monsoon season. The latest Indian
Meteorological Department data revealed that India has so far received
cumulative rainfall of 119 mm for the June 1-30 period, down 31% from
the last year. The total daily arrivals were hovering at the levels of
around 65000 bags in the entire major mandies, down 15000 bags from the
last day. Monsoon rains were 31 percent below average until July 2,
which could impact sowing of other summer-sown pulses such as pigeon
peas or tur, black matpe or urad and green gram or moong. Chana
production in the current crop year, ending in June, is estimated at 7.4
million tonnes, lower than 8.22 million tonnes in the previous year. In
Delhi spot market, chana fell down by -25.95 rupee to end at 4464.05
rupee per 100 kgs.. The volume was noted at 91110 lots. Support for
chana is at 4421 below that could see a test of 4387. Resistance is now
seen at 4499 above that could see a resistance of 4543.

Trading Ideas:

Chana trading range for the day is 4387-4543.

Chana ended lower due to profit booking though downside was limited helped by negative impact of poor monsoon rains

The total daily arrivals were hovering at the levels of around 65000 bags in the entire major mandies.

NCDEX accredited warehouses chana stocks gained by 119 tonnes to 83893 tonnes.

In Delhi spot market, chana fell down by -25.95 rupee to end at 4464.05 rupee per 100 kgs.