Commodity Trading Tips for Chana by KediaCommodity

Ajay Kumar Kedia 21 February 2014

Chana Chana settled down -0.83% at 2985 on the account of higher domestic production estimate coupled with steady supplies of new crop in local mandies. As per the second advance estimates of Indian government, the total chana production in 2013-14 is estimated at 9.76 million tonnes against 8.83 million tonnes due to higher sowing acreage coupled with favouable crop conditions in major producing states. The spot data suggest that fresh arrivals of around 60-70 thousand bags of chana have been reported in the major mandies of Maharashtra, Karnataka and Andhra Pradesh. Due to higher acreage and optimum weather condition, production of Chana (Chickpeas) in India is likely to be around 9.79 million tonnes in the current year, higher when compared to 8.88 million tonnes, produced last year. Dal mills are buying chana just to meet their immediate requirement as demand of dal from local as well as from other centres was poor due to cheaper availability of green vegetables. Arrivals in the local market stood at 30 truck loads versus 40 truck loads on Tuesday. Farmers in producing centres are holding stocks hoping commencement of buying by government agencies at minimum support price of Rs 3,100 per quintal. However, outlook for gram is weak due as output in 2013-14 is projected at 9.79 million ton versus 8.83 million ton a year ago. In Delhi spot market, chana dropped by -16.65 rupee to end at 2908.35 rupee per 100 kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 1.61% to settled at 88850 while prices down -25 rupee, now Chana is getting support at 2970 and below same could see a test of 2954 level, And resistance is now likely to be seen at 3009, a move above could see prices testing 3032.