Chana yesterday settled down -0.62% at 3228 as plentiful of rains in the kharif pulses-cultivating regions and higher-than-expected spot supplies weighed on prices. Supplies of chana, or chickpeas, have slowed down from the major cultivating states except Rajasthan, where arrivals are still higher than expected Demand is picking up at lower prices. Buying from millers is expected to improve in the coming days. Chana output 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. But rains in most parts of India have not enabled a strong pick up in demand. Not much of a movement is seen in Delhi Chana market. Meanwhile, there are some concerns lingering on the pulses sowing in Maharashtra in select pockets. The overall movement in the ready market is lax and prices are not showing much of movement. The arrivals in Delhi's Lawrence Road mandi are 40 trucks as compared to 50 trucks in last session. The demand is moderate in other pulses like Tur and Masur. The spot prices are off their two-year lows but 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. In Delhi spot market, chana dropped by -19 rupee to end at 3208.5 rupee per 100 kgs. Now Chana is getting support at 3217 and below same could see a test of 3205 level, And resistance is now likely to be seen at 3245, a move above could see prices testing 3261.

Trading Ideas:

Chana trading range for the day is 3206-3262.

Chana ended with losses as plentiful of rains and higher-than-expected spot supplies weighed on prices

The overall movement in the ready market is lax and prices are not showing much of movement.

NCDEX accredited warehouses chana stocks gained by 1426 tonnes to 134530 tonnes.

In Delhi spot market, chana dropped by -19.4 rupee to end at 3208.5 rupee per 100 kgs.