Technically Chana market is under long liquidation as market has witnessed drop in open interest by 3.81% to settled at 21740 while prices down 57 rupees.
Now NCDEX Chana is getting support at 4265 and below same could see a test of 4244 levels, and resistance is now likely to be seen at 4325, a move above could see prices testing 4364.
Chana on NCDEX settled down by 1.31% at 4287 amid higher availability of stock, higher area coverage and weak demand. Farmers have covered 102.39 lakh ha against 94.28 lakh habits is higher by 7.91 percent.
Chana area in Maharashtra is 62% up to 19.66 lakh ha, it 42% up in Rajasthan to 21.38 lakh ha. However, it is down by 6.62 5 to 27.35 lakh ha. Current sowing pace hints area to exceed 110 lakh ha this year.
From stock point of view Nafed still has 16.4 lakh MT chana. Out of this 10 lakh MT has been reserved for supply to the state govt. MP has 13 lakh MT chana while Raj has 2.4 lakh MT. Nafed may start selling chana in both states from mid Jan.
Area is likely to exceed 110 lakh ha and weather remains favourable. Agriculture Ministry data showed that area under Chana or Gram jumped 5.71% to 98.52 lh. However, there is still time for the fresh crops to arrive in the spot markets.
The new chana crop has started arriving in Kalaburagi, a key market in Karnataka. However, the new crop has few takers as higher moisture content restricted demand from dal millers and domestic stockists.
Crop arrivals of the pulse were pegged at 100-150 bags (1 bag = 100 kg), compared with 50-60 bags from the same period a year ago , adding that arrivals will gain pace from last week of January.
--Chana trading range for the day is 4244-4364.
--Chana prices ended with losses amid higher availability of stock, higher area coverage and weak demand.
--Farmers have covered 102.39 lakh ha against 94.28 lakh habits is higher by 7.91 percent.
--Chana area in Maharashtra is 62% up to 19.66 lakh ha, it 42% up in Rajasthan to 21.38 lakh ha.
--In Delhi spot market, chana gained by 27.5 Rupees to end at 4377.5 Rupees per 100 kgs.
Courtesy: Kedia Commodities