Chana dropped Rs 15 and settled at Rs 3518 per quintal as new season arrivals from parts of southern India and expectations of higher imports weighed on sentiment. Chana prices can fall further because fresh supplies have started from Karnataka and Andhra Pradesh and would improve gradually. The first advance estimates by the farm ministry show the output of kharif, or summer-sown pulses, could fall to 5.26 million tonnes from 6.16 million tonnes a year earlier. Chana arrivals are likely to be peak during March-April and prices may drop during that period. According to the Ministry of Agriculture crop report, the total domestic Chana production in 2012 was reported at 76.60 lakh tonnes, down almost 5.26 % from 2011. This was mainly due to weak sowing acreage along with some crop damage in Maharashtra and Rajasthan. While overall pulses output is expected to fall by 5.26% to 17.29 million tonnes against 18.24 million tonnes in 2010-11. Chana arrivals are likely to be peak during March-April and prices may drop during that period. The far month futures are falling on expectation of the arrivals. According to the Ministry of Agriculture crop report, the total domestic Chana production in 2012 was reported at 76.60 lakh tonnes, down almost 5.26 % from 2011. In Delhi spot market, chana jump up by 2.5 rupee to end at 4002.5 rupee per 100 kgs. The volume was noted at 17730 lots. Support for chana is at 3507 below that could see a test of 3497. Resistance is now seen at 3538 above that could see a resistance of 3559.

Trading Ideas:

Chana trading range for the day is 3497-3559.

Chana dropped as new season arrivals from parts of southern India and expectations of higher imports weighed on sentiment.

Chana prices can fall further because fresh supplies have started from Karnataka and A. P and would improve gradually.

NCDEX accredited warehouses chana stocks dropped by 2465 tonnes to 12952 tonnes.

In Delhi spot market, chana jump up by 2.5 rupee to end at 4002.5 rupee per 100 kgs.