Chana yesterday settled down by -2.53% at 3153 on profit booking after the gains seen on day before on low level buying ahead of monsoon amid continued weakness in the Indian currency against the dollar. Pressure seen on higher side again as estimates of higher production restricted the upside. Demand from stockists has improved as prices are at lower levels. The output of chana, or chick pea, is expected to be 8.49 million tonnes in 2012/13 as per the agriculture ministry's third advance estimate, as against 7.70 million tonnes a year earlier. The arrival period this season has been extended on account of record high production and a delayed start in harvesting. Chana arrivals remain low on the massive fall in prices off late in Delhi mandi. This has ensured that the trend of poor arrivals stays in place even as harvesting continues at a heady pace. The average daily supplies were around 25-30 trucks during last week amid weak prices. The total arrivals in Delhi were 25 trucks, just like yesterday. The spot prices slipped near Rs 3200 per quintal earlier in the week- their two year lows. The commodity is down around 20% on a year ago basis as well. The total output of Chana is likely to be 8.57 million tonnes in the current year. This marks a gain of 11.29% compared to the last year's production of 7.57 Million tonnes. Rabi Pulses output is likely to be 12.09 million tonnes, up 9.61% on the year. Market sources suggested that anticipation of timely and better monsoon in the current year prompted the stockiest selling in major producing states such as Rajasthan and Madhya Pradesh. Now Chana is getting support at 3116 and below same could see a test of 3079 level, and resistance is now likely to be seen at 3214, a move above could see prices testing 3275.

CHANA

Chana trading range for the day is 3152-3284.

Chana dropped nearly -2.5% on profit booking after the gains seen on day before on low level buying ahead of monsoon.

Demand from stockists has improved as Southwest monsoon is likely to hit Kerala coast by Sunday, according to IMD.

Support can be seen from rupee weakness as India imports as much as 0.15-0.5mts annually from Australia and Canada.

In Delhi spot market, chana jump up by 58.95 rupee to end at 3308.95 rupee per 100 kgs.

SELL CHANA JULY BELOW 3210 SL 3240 TGT 3185-3160. NCDEX