NCDEX Chana under short covering; Resistance seen at 4180
Commodity Online | August 07 2020
UPDATED 12:10:52 IST

NCDEX Chana under fresh buying; Support seen at 5056

MCX Cotton under fresh buying; Support seen at 17950

NCDEX Jeera under fresh selling; Resistance seen at 14140

NCDEX Turmeric under fresh selling; Support seen at 5844

NCDEX Mustard Seed under long liquidation; Resistance seen at 5343

Technically Chana market is under short covering as market has witnessed drop in open interest by 14.97% to settled at 27670 while prices up 25 rupees.

Now NCDEX Chana is getting support at 4136 and below same could see a test of 4110 levels, and resistance is now likely to be seen at 4180, a move above could see prices testing 4198.

Chana yesterday settled up by 0.6% at 4162 as improved demand in the market and procurement of Chana by NAFED supported the market prices sentiments. However, reports of NAFED started releasing its stocks have arrested uptrend in Chana.

Further, higher production estimates this year also weighed on the sentiments. The government has procured over 93% of the targeted 22 lakh tonne of Chana for 2020-21 (Apr-Mar) marketing year from nine states under price support scheme.

As of Jun 30, 2020 NAFED has procured 20.55 lakh tonne Chana. Chana import for 2019-20 (Apr-Mar) stood at 3.71 lakh tonnes as against 1.86 lakh tonnes imported during the corresponding period of the previous year.

Apart from Chana, it has been reported that around 6.67 lakh tonnes of Pea has been imported during 2019-20 (Apr-Mar) and total pulses import stood at 29.75 lakh tonnes.

Canada Government in its June month report informed the Chickpea area seeded is expected to decrease sharply from 2019-20 due to difficulties during previous harvest and lower yields.

After three years of drought, Australia will see its crop production spike in 2020-21, according to the Australian Bureau of Agriculture and Resource Economics and Sciences (ABARES).

Trading Ideas:
--Chana trading range for the day is 4110-4198.
--Chana prices gained as improved demand in the market and procurement of Chana by NAFED supported the market prices sentiments
--The government has procured over 93% of the targeted 22 lakh tonne of Chana for 2020-21 (Apr-Mar) marketing year from nine states
--NAFED has extended procurement period for Chana in Madhya Pradesh up to 29th July 2020.
--In Delhi spot market, chana remains unchanged at by 0 Rupees to end at 4130.55 Rupees per 100 kgs.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil 2 10400.00
Coconut Oil 2.5 18800.00
Arecanut 107 36365.00
Sugar 3 3470.00

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