Chana gained Rs 28 and settled at Rs 3122 per quintal reversing initial losses, as prospects of lower output in the current season and firm prices of other pulses offset a rise in arrivals in key southern states.
The area under Chana cultivation fell to 8.93 million hectares from 9.33 million hectares in the previous season, farm ministry data showed.
Lower acreage could result in a decline in overall production and may support prices despite rising arrivals. The new crop has started arriving in the markets in small quantities in southern states and is expected to gain momentum in the next few days, which is likely to put pressure on prices.
According to the Farm Ministry area sown under Rabi pulses is down by 1.28% to 13.85 million hectares as compared to 14.02 lakh hectares in the same period previous year.
Chana sowing till December 23rd 2011 is 5.9% down at 8.64 million hectares as compared to 9.18 million hectares in the same period previous year. The total daily arrivals were hovering at the levels of around 100000 bags in the entire major mandies.
In Delhi spot market, Chana fell down by -12.5 rupee to end at 3200 rupee per 100 kgs. The volume was noted at 72220 lots. Support for chana is at 3088 below that could see a test of 3053. Resistance is now seen at 3140 above that could see a resistance of 3157.
Trading Ideas:
Chana trading range is 3053-3157.
Chana rose reversing on prospects of lower output in the current season and firm prices of other pulses
The area under chana cultivation fell to 8.93 million hectares from 9.33 million hectares in the previous season
NCDEX accredited warehouses chana stocks dropped by 918 tonnes to 26009 tonnes.
In Delhi spot market, chana fell down by -12.5 rupee to end at 3200 rupee per 100 kgs.
Courtesy: Kedia Commodities
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