Chana dropped Rs 44 and settled at Rs 4624 per quintal as improvement in the monsoon rains that could aid sowing of summer-sown pulses, triggered selling that offset local demand ahead of the festive season. India's monsoon rains have improved and are likely to cover the entire country. An improvement in the rainfall and expectations of good rains in July are weighing on sentiment but the overall trend is up because of low supplies. 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. 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. The total daily arrivals were hovering at the levels of around 58000 bags in the entire major mandis, up 2000 bags from the last day. Pulses output is expected to fall to 17.02 mln tonnes vs 18.24 mln tonnes in 2010-11. In Delhi spot market, chana jump up by 35.75 rupee to end at 4619.1 rupee per 100 kgs. The volume was noted at 107510 lots. Support for chana is at 4598 below that could see a test of 4572. Resistance is now seen at 4663 above that could see a resistance of 4702.

Trading Ideas:

Chana  trading range for the day is 4572-4702.

Chana fell as improvement in the monsoon rains that could aid sowing of summer-sown pulses triggered selling

An improvement in the rainfall and expectations of good rains in July are weighing on sentiment

NCDEX accredited warehouses chana stocks dropped by 668 tonnes to 83410 tonnes.

In Delhi spot market, chana jump up by 35.75 rupee to end at 4619.1 rupee per 100 kgs.