Chana dropped Rs 19 and settled at Rs 4602 per quintal on profit booking after prices gained on the back of delayed monsoon in major producing regions. Rains in MP and AP could improve sowing prospects for Urad and Tur which have been low so far Monsoon progress in this critical month of July would be important not just for determining the Pulses sentiment but also the Agri market as a whole. Pulses output is expected to fall to 17.02 mln tonnes vs 18.24 mln tonnes in 2010-11. Chana production is expected to fall by 6.8% to 7.40 mln tonnes as compared to 8.22 mln tonnes last year. As per Rajasthan farm department's first advance estimates for Rabi crops, Chana output is estimated down 7.8% at 14.76 lakh tonnes in 2011-12 season vs 16 lakh tonnes in 2010-11. 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. Reports of decline in Pulses production especially Tur from states like AP, Maharashtra and Karnataka due to reported lower rainfall activities there. According to the third advance estimates, Pulses output is pegged at 17.02 mn tn in 2011-12 compared with 18.24 mn tn produced in the year 2010-11 while Chana output in 2011-12 is estimated lower at 7.40 million tonnes as compared to 7.66 million tonnes as stated in second Advance estimates and 8.22 mn tn produced last year. In Delhi spot market, chana jump up by 120.75 rupee to end at 4611.65 rupee per 100 kgs. The volume was noted at 169970 lots. Support for chana is at 4570 below that could see a test of 4539. Resistance is now seen at 4655 above that could see a resistance of 4709.

Trading Ideas:

Chana trading range for the day is 4539-4709.

Chana gained on the back of delayed monsoon in major producing regions

Poor monsoon rainfall in June in key growing areas could affect pulses output in 2012/13

NCDEX accredited warehouses chana stocks gained by 120 tonnes to 83349 tonnes.

In Delhi spot market, chana jump up by 120.75 rupee to end at 4611.65 rupee per 100 kgs.