Chana dropped Rs 36 and settled at Rs 3444 per quintal as sluggish demand amid rising supplies weighed on prices. Expecting bumper crop traders are liquidating old stocks, but demand is weak. In such situation, fresh supplies are putting further downward pressure on prices. Supplies from new season crop have started in Andhra Pradesh, Karnataka and Maharashtra and they are likely to rise in the coming weeks. The first advance estimates from 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 have gone up in Delhi today as weather cleared a little and traders bought their old stocks before the fresh arrivals start in full flow in next few weeks. The total arrivals in the Lawrence Road mandi were 40 trucks as compared to 20-25 in last few days. The weather in major growing areas is turning little worrisome. Rain showers are being reported in select pockets in Rajasthan. Market sources suggested that new supplies of chana have been arrived in the major producing mandies of Maharashtra and Karnataka. The total arrivals of around 60-70 thousand tonnes of new chana reported in these states. In Delhi spot market, chana fell down by -65.25 rupee to end at 3575.4 rupee per 100 kgs. The volume was noted at 49730 lots. Support for chana is at 3427 below that could see a test of 3410. Resistance is now seen at 3474 above that could see a resistance of 3504.

Trading Ideas:

Chana  trading range for the day is 3410-3504.

Chana ended lower as sluggish demand amid rising supplies weighed on prices.

Expecting bumper crop traders are liquidating old stocks, but demand is weak.

Supplies from new season crop have started in AP, Karnataka and Maharashtra and likely to rise in coming weeks.

In Delhi spot market, chana fell down by -65.25 rupee to end at 3575.4 rupee per 100 kgs.