Chana settled down -0.36% at 3036 due to sufficient stocks, higher area under cultivation and prospects of better crop, though concerns about the output in Madhya Pradesh restricted the downside. The area under cultivation has increased but there are some concerns (about the crop) in Madhya Pradesh. According to sources, with farmers switching over to other cash-rich crops on account of poor returns, the area under chana crop is expected to fall sharply this year. Hence, for domestic requirement, the country will have to look to imported chana and prices would more or less be guided by rise or fall of dollar against rupee. Farmers have begun sowing chana in the major cultivating regions. There are some concerns over a shift in acreage in Madhya Pradesh. As per the latest release from Ministry of Agriculture, the total sowing of chana has been reported at 85.28 lakh hectares against 80.59 lakh hectares in the last year in same period. Traders mentioned that the total production of chana in the current year is likely to be around 75-76 lakh tonnes, up 4-5 lakh tonnes from the last year due to favourable monsoon rainfall and comfortable sowing conditions in major producing states. In Delhi spot market, chana dropped by -24.05 rupee to end at 2939.3 rupee per 100 kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -1.16% to settled at 82120 while prices down -11 rupee, now Chana is getting support at 3025 and below same could see a test of 3014 level, And resistance is now likely to be seen at 3053, a move above could see prices testing 3070.

Trading Ideas:

Chana trading range for the day is 3014-3070.

Chana settled down due to sufficient stocks, higher area under cultivation and prospects of better crop weighed.

The area under cultivation has increased but there are some concerns (about the crop) in Madhya Pradesh.

NCDEX accredited warehouses chana stocks dropped by 1339 tonnes to 12060 tonnes.

In Delhi spot market, chana dropped by -3.55 rupee to end at 2950 rupee per 100 kgs.