Technically Chana market is under long liquidation as market has witnessed drop in open interest by 1.77% to settled at 26620 while prices down 36 rupees.
Now NCDEX Chana is getting support at 4081 and below same could see a test of 4058 levels, and resistance is now likely to be seen at 4141, a move above could see prices testing 4178.
Chana yesterday settled down by 0.87% at 4104 on profit booking after prices seen supported after update that due to heavy moisture. In recent session prices seen supported due to supply shortages as many cotton seed crushing units are closed.
Andhra Pradesh aims to reduce the area under cotton in the coming 2020-21 (Jul-Jun) kharif season to 544,000 ha from 654,000 ha last year.
Local textile mills and ginners were in distress. Many mills were closed up till now due to the building up of inventory while some mills were working partially but they were near closing.
The government has decided to exempt cottonseed oil cake from 5 percent General Sales Tax. Punjab has registered a record production of cotton at 43.25 lakh quintals in 2019-20 season even as the procurement of the crop is still in its last stage.
According to the data procured from the Punjab State Agricultural Marketing Board, the state has witnessed a jump of over 26% over the production of 34.68 lakh quintals recorded during the 2018-19 season.
The Cotton Corporation of India (CCI) has announced bulk discount for cotton bales with it from 2018-2019 and 2019-2020 cotton seasons. The CCI’s operations under which the corporation procures cotton from farmers at the government declared Minimum Support Price (MSP) of Rs 5,550 per quintal continues till September.
--Chana trading range for the day is 4058-4178.
--Chana prices dropped amidst improved arrivals in the domestic mandis and stagnant demand from millers.
--The acreage of the crop in the recently ended week is reported at 107.21 lakh hectares.
--According to NAFED, government has procured nearly about 2.5 Lakh metric tonnes of Chana.
--In Delhi spot market, chana remains unchanged at by 0 Rupees to end at 4092.7 Rupees per 100 kgs.
Courtesy: Kedia Commodities