Commodity Trading Tips for Chana by KediaCommodity

Ajay Kumar Kedia 2 September 2013

Chana Chana settled up 0.9% at 3248 on value buying while hopes of a pick-up in local demand in the festive season aided the upside but upside was limited as ample rains raised hopes of better sowing while higher area under summer-sown pulses and conducive weather weighed. Prospects of better chana sowing are keeping chana prices under pressure. But some buying may come ahead of festival. Local demand for chana flour is likely to pick up in the coming days, ahead of Ganesh Chaturthi, a local festival. Chickpea is a rabi crop sown during winter. Farmers depend on rains to moisten the land for sowing. As per latest release from Ministry of Agriculture, the acreage under pulses has shot up by 26.21% to 79.5 lakh hectares. This is mainly due to strong sowing of Tur and Urad in Maharashtra. The total output of Chana is likely to be 8.57 million tons in the current year. This marks a gain of 11.29% compared to the last year's production of 7.57 million tons. Rabi Pulses output is likely to be 12.09 million tons, up 9.61% on the year. Chickpea production in the country is estimated at 8.8 mn tons in 2012-13 season, according to the fourth advance estimates released by the Ministry of Agriculture. With a significant hike in MSP of kharif pulses for 2013-14 season, the area under cultivation is expected to increase this year. Technically market is under fresh buying as market has witnessed gain in open interest by 14.62% to settled at 108340 while prices up 29 rupee, now Chana is getting support at 3201 and below same could see a test of 3155 level, And resistance is now likely to be seen at 3287, a move above could see prices testing 3327.