Chana gained Rs 34 and settled at Rs 3370 per quintal as prices got support on millers demand at lower levels due to weak production estimates in the current year.
Arrivals in all major spot markets in Andhra Pradesh, Karnataka, and Maharashtra are reported to be lower than expectations, and is supporting the prices.
Chana harvesting in southern states started in mid January and will reach its peak during March. Buying by traders to meet consumer demand during the 'holi' festival is also pushing prices up.
As per second advance estimates of government, the total domestic production of Chana in the current year is likely at 7.66 million tonnes against 8.22 million tonnes that was reported in the last year.
This is mainly due to waning sowing acreage in major producing states such as Rajasthan, Maharashtra and Andhra Pradesh.
Moreover, weak opening stocks of around 10-11 lakh tonnes against 23 lakh tonnes that were reported last year might also witness some shortfall in overall domestic supply of chana.
In Delhi spot market, Chana jump up by 29 rupee to end at 3379 rupee per 100 kgs.
The volume was noted at 108120 lots. Support for chana is at 3324 below that could see a test of 3277. Resistance is now seen at 3398 above that could see a resistance of 3425.
Trading Ideas:
Chana trading range for the day is 3277-3425.
Chana gained as prices got support on millers demand at lower levels due to weak production estimates
Arrivals in all major markets in A.P, Karnataka, and Maharashtra are reported to be lower than expectations
NCDEX accredited warehouses chana stocks dropped by 61 tonnes to 18319 tonnes.
In Delhi spot market, chana jump up by 29 rupee to end at 3379 rupee per 100 kgs.
Courtesy: Kedia Commodities
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