Fundamental Analysis Chana futures settled lower on Monday as agriculture minister during the last week has estimated record Chana output in the coming season. Rising arrivals, ample carry-forward stocks and hopes of higher output also weighed on the prices.
Agriculture minister on Friday has released second advance estimates of farm output. According to these estimates, another bumper crop of Chana is expected in the coming season due to increased acreage and favorable weather in Key growing areas.
However, production of other Rabi pulses like Urad and moong remained unchanged at 33 lakh tonnes and 26 lakh tonnes respectively.
Fresh arrivals of Chana crop have started in Western parts of India. However, arrivals will pick up March onwards.
Overall crop condition is reported normal and most of the pulses crops are in vegetable to pod formation stages and the Kharif season arhar is reported in flowering to harvesting stages.
Technical Analysis 14-days RSI is at 37.06 and is moving sideways.
Chana contract closed below its 10 days and 20 days EMA, indicating a down trend.
Outlook Chana futures are expected to trade with weak sentiments in the intraday as agriculture minister on Friday has estimated record Chana output in the coming season. However, the output of other Pulses is estimated to remain unchanged and thus prices of these Pulses like Tur, Urad and Moong which had declined in the last few weeks will not fall much now onwards. Thus, tracking the other Pulses, we don’t expect much downside in the Chana prices till mid March. However, in the long term (mid March onwards),Chana prices are likely to trade with bearish sentiments as fresh arrivals from Rajasthan and MP coupled with estimates of higher production may pressurize the prices.
Courtesy: Angel Commodities Get big time earning in global commodities.
