Technically Chana market is under long liquidation as market has witnessed drop in open interest by 4.24% to settled at 86350 while prices down 37 rupees.
Now NCDEX Chana is getting support at 4007 and below same could see a test of 3985 level, and resistance is now likely to be seen at 4060, a move above could see prices testing 4091.
Chana on NCDEX settled down 0.91% at 4028 as prices seen under pressure as availability in the market is higher as stockiest are selling their crop. There are expectations that the coming Rabi crop sowing would be higher given the current weather condition.
At present Chana demand is lower than normal due lower demand of millers and lower prices of other pulses which is putting downward pressure on the prices. Higher stocks of Chana with NAFED and expectation of liquidation in the coming months is putting downward pressure on the domestic prices.
However, government decision to sell Chana at or above MSP is holding the prices. According to the fourth advance estimate, India Chana production of 2018-19 is estimated at 10.13 MMT which is 1 per cent higher than the third advance estimate of 10.09 MMT.
Final production estimate of 2017-18 is 11.38 MMT. This year production estimate is lower than last year due to lower acreage. All India Chana arrivals from 1st to 26th of August is 1.19 lakh MT which is around 6.30 per cent lower than last year arrivals of 1.27 Lakh MT in the same time period.
Lower arrivals are due to prevailing lower prices of Chana in the domestic market. According to the latest report of ABARES, Australia chickpea acreage forecast for 2019-20 is 3.70 lakh hectares which in 22.11 per cent higher than 2018-19 acreage estimate of 3.03 lakh hectares.
--Chana trading range for the day is 3985-4091.
--Chana prices gained on short covering after prices seen under pressure as availability in the market is higher as stockiest are selling their crop.
--Higher stocks of Chana with NAFED and expectation of liquidation in the coming months also liniting the upside.
--There are expectations that the coming Rabi crop sowing would be higher given the current weather condition.
--In Delhi spot market, chana dropped by 10.85 Rupees to end at 4050 Rupees per 100 kgs.
Courtesy: Kedia Commodities