Technically Chana market is under long liquidation as market has witnessed drop in open interest by 7.54% to settled at 36690 while prices down 202 rupees.
Now NCDEX Chana is getting support at 4777 and below same could see a test of 4702 levels, and resistance is now likely to be seen at 5001, a move above could see prices testing 5150.
Chana yesterday settled down by 4% at 4851 because of prospects for a big increase in India's productions of pulses and concerns negative crush margins in China will make peas seem expensive.
The potential for a major increase in chickpea output in India limits any hope import duties on peas will be reduced next year or that tariff rate quotas will be significantly expanded.
At the same time, negative crush margins for soybeans in China could reduce the price at which peas are a competitive ingredient in livestock feed markets.
Some smaller crushers are reported to be trying to "wash out" some purchase contracts from the United States, mainly because they failed to hedge purchases.
Production of the five main pulses grown in Australia ended up at 2.87 million metric tons (MT) this year, up over one million tons from last year and almost equal to the previous five year average.
ABARES said, "Winter crop production in Australia was boosted by very favorable seasonal conditions during spring in most cropping regions in New South Wales, Victoria and South Australia.
Crops in these states were generally in very good condition at the end of winter and favorable rainfall during September and October increased soil moisture levels during the critical grain development period.
--Chana trading range for the day is 4702-5150.
--Chana prices dropped because of prospects for a big increase in India's productions of pulses.
--Pressure also seen amid concerns negative crush margins in China will make peas seem expensive.
--The potential for a major increase in chickpea output in India limits any hope import duties on peas will be reduced next year.
--In Delhi spot market, chana remains unchanged at by 0 Rupees to end at 4850 Rupees per 100 kgs.
Courtesy: Kedia Commodities