Chana dropped Rs 10 and settled at Rs 4529 per quintal due to profit booking after a sharp rise due to improved demand at the spot market amid thin supplies amid fragile sowing progress of kharif pulses. weak monsoon rains that could hit the sowing of summer-sown pulses, also aided sentiment. Chana is a winter crop whose sowing begins in October and extends to December. Demand for chana usually goes up during the rainy season on lower availability of fresh vegetables. 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. 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 total daily arrivals were hovering at the levels of around 56000 bags in the entire major mandies, down 5000 bags from the last day. In Delhi spot market, chana jump up by 50 rupee to end at 4500 rupee per 100 kgs. The volume was noted at 137790 lots. Support for chana is at 4506 below that could see a test of 4484. Resistance is now seen at 4560 above that could see a resistance of 4592.

Trading Ideas:

Chana trading range for the day is 4484-4592.

Chana dropped due to profit booking after a sharp rise due to improved demand at the spot market

Weak monsoon rains that could hit the sowing of summer-sown pulses supported the prices

NCDEX accredited warehouses chana stocks dropped by 408 tonnes to 83310 tonnes.

In Delhi spot market, chana jump up by 50 rupee to end at 4500 rupee per 100 kgs.