Chana gained Rs 134 and settled at Rs 4636 per quintal due to slack spot
supplies amid strong demand from millers ahead of the festive season.
Poor monsoon rainfall in June in the key growing areas could affect
pulses output in 2012/13. Demand for chana usually goes up during the
rainy season on lower availability of fresh vegetables. A weak monsoon
rains could hit the sowing of summer-sown pulses such as pigeon peas or
tur, black matpe or urad and green gram or moong. Chana is a winter crop
whose sowing begins in October and extends to December. India's monsoon
rains were 49 percent below average in the week that ended on July 4,
data from the weather office showed. 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. Maharashtra Agriculture
Department states that kharif pulses area as on 29 June is down by 9.9
percent to 2,55,595 ha as compared from 2,83,705 ha in same period
during last year. The total daily arrivals of chana were hovering at the
levels of around 56000 bags in the entire major mandis, unchanged from
the last day. As per the latest release from Maharashtra Agriculture
Board, the total area under kharif crop declined by almost 1.5% to 38.42
lakh hectares as on 6th July 2012. This was mainly due to poor sowing
of cereals especially rice so far in the current year. In Delhi spot
market, chana fell down by -9.1 rupee to end at 4490.9 rupee per 100
kgs. The volume was noted at 145850 lots. Support for chana is at 4537
below that could see a test of 4438. Resistance is now seen at 4686
above that could see a resistance of 4736.

Trading Ideas:

Chana trading range for the day is 4433-4731.

Chana ended higher due to slack spot supplies amid strong demand from millers ahead of the festive season

Demand for chana usually goes up during the rainy season on lower availability of fresh vegetables.

NCDEX accredited warehouses chana stocks dropped by 491 tonnes to 83229 tonnes.

In Delhi spot market, chana fell down by -9.1 rupee to end at 4490.9 rupee per 100 kgs.