NCDEX Chana under long liquidation; Support seen at 4215
Commodity Online | June 23 2020
UPDATED 12:10:23 IST

MCX Gold under short covering; Resistance seen at 49465

MCX Silver under long liquidation; Support seen at 65712

MCX Crude Oil under fresh selling; Support seen at 3781

MCX Natural Gas under long liquidation; Support seen at 176.7

MCX Copper under fresh selling; Resistance seen at 614.8

Technically Chana market is under long liquidation as market has witnessed drop in open interest by 1.66% to settled at 62160 while prices down 16 rupees.

Now NCDEX Chana is getting support at 4215 and below same could see a test of 4195 levels, and resistance is now likely to be seen at 4268, a move above could see prices testing 4301.

Chana yesterday settled down by 0.38% at 4234 on profit booking after prices gained on the back of firmness in the spot demand severe shortage in supply of raw cotton.

Non-availability of cotton seed with CCI bought cotton yet to be converted into candy by ginners across the major tracks continue to haunt trade.

Meanwhile, domestic end users of cotton oil have started to import oil with imported oil landing at a cheaper rate compared to domestically produced oil.

Such low key crush for cotton seed resulted in lower availability of cotton seed oilcake thereby providing lateral support for prices. 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.

Trading Ideas:
--Chana trading range for the day is 4195-4301.
--Chana dropped on profit booking after prices gained as support seen after Madhya Pradesh has extended the procurement period for chana
--Farmers in the state had sown rabi chana across 2.7 mln ha in 2019-20, around 25% of the country's total area.
--MahaFPC has announced that it has been successful in keeping its procurement operations under the Government PSS running and has crossed Rs 500 crore mark
--In Delhi spot market, chana remains unchanged at by 0 Rupees to end at 4200.65 Rupees per 100 kgs.

Courtesy: Kedia Commodities

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