Commodity Trading Tips for Chana by KediaCommodity

ChanaChana dropped Rs 27 and settled at Rs 4742 per quintal on selling pressure at higher levels due to possibility of strong production in the current year. As per the first Advance estimates released by Ministry of Agriculture, the chana output of India for 2012-13 is targeted at 79.6 lakh tonnes , up almost 3.8% from the last year. Moreover, favourable rainfall in some parts of Rajasthan, Gujarat and Madhya Pradesh during September also incite the strong chana sowing in the current year. China is likely to imports 1 million tonnes of pulses in 2016, according to reports of China Pulse Import and Export Industry Conference. Canada supplies more than 90 per cent of China’s field pea imports. Chana traded with high volatility even as Spot remained firm due to the rising Festive season demand. Profit booking at the higher levels limited the uptrend but overall market sentiments remained up on lower Pulses production prospects and rising domestic demand. As per 1st Advanced Production Estimates for Kharif Pulses from Ministry of Agriculture, it was lowered to 5.26 MT from 6.16 MT as per last estimates. This is likely to provide short term support to the falling prices which are still waiting for the Festive season demand to pick up. In Delhi spot market, chana fell down by -46.45 rupee to end at 4703.55 rupee per 100 kgs. The volume was noted at 78580 lots. Support for chana is at 4716 below that could see a test of 4690. Resistance is now seen at 4778 above that could see a resistance of 4814.

Trading Ideas:

Chana  trading range for the day is 4690-4814.

Chana ended lower on selling pressure at higher levels due to possibility of strong production in the current year.

Chana output of India for 2012-13 is targeted at 79.6 lakh tonnes , up almost 3.8% from the last year.

NCDEX accredited warehouses chana stocks dropped by 673 tonnes to 51327 tonnes.

In Delhi spot market, chana fell down by -46.45 rupee to end at 4703.55 rupee per 100 kgs.