Fresh buying seen in Chana, open interest up by 1.62%
Commodity Online | May 27 2016
UPDATED 14:46:54 IST

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Chana on NCDEX settled up by 1.05% at 6086 due to limited supplies in local mandies. The sources stated that total production will be declined by almost 15 lakh tonnes from last year due to weak crop in Rajasthan and Madhya Pradesh. Chana production is revised downwards to 7.5 mt from 8 mt forecasted in 2nd estimate (Feb 2016), in the third advance estimates (May 2016. In Feb 2016, country imported over 79,000 lt of chana higher than 38,000 tones imports last year in Feb. Chana imports into the country touched about 9.93 lt of until February in the current financial year (Apr 2015-Feb 2016). Pulses prices have seen increase because of a fall in domestic production, largely due to drought and scanty rainfall.

According to data from commerce ministry, during 2016-17 in April month imports of pulses in the country have increased by more than 24%.   Last week, Union Food Minister said the Centre is ready to make available un-milled tur dal to states at Rs 60 a kg and urad at Rs 82 per kg, which should provide enough room to state governments to sell pulses below Rs 120 a kg.  In order to build stock of pulses, Food Ministry has acquired 55,000 tons of pulses, out of which 26,000 tons was imported. The daily arrivals have also been reported at 25 motors at Delhi mandi.

In Delhi spot market, chana dropped  by -4.8 rupee to end at 6231.75 rupee per 100 kgs.Technically market is under fresh buying as market has witnessed gain in open interest by 1.62% to settled at 14470, now Chana is getting support at 6011 and below same could see a test of 5936 level, and resistance is now likely to be seen at 6135, a move above could see prices testing 6184.

Trading Ideas:
--Chana trading range for the day is 5936-6184.
--Chana prices ended with gains due to limited supplies in local mandies.
--The sources stated that total production will be declined by almost 15 lakh tonnes from last year due to weak crop in Rajasthan and Madhya Pradesh.
--NCDEX accredited warehouses chana stocks dropped by 171 tonnes to 2424 tonnes.
--In Delhi spot market, chana dropped by -4.8 rupee to end at 6231.75 rupee per 100 kgs.

Courtesy: Kedia Commodities
 
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