Technically Chana market is under short covering as market has witnessed drop in open interest by 5.85% to settled at 49550 while prices up 39 rupees.
Now NCDEX Chana is getting support at 4491 and below same could see a test of 4458 levels, and resistance is now likely to be seen at 4547, a move above could see prices testing 4570.
Chana on NCDEX settled up by 0.87% at 4523 on short covering after prices dropped as a pickup in rainfall is being considered to be a positive factor for rabi sowing. However, the availability of chana in the open market is higher due to good production last year coupled with increase in chana imports in 2019.
National Agricultural Co-operative Marketing Federation of India Ltd (NAFED) is currently have stock of about 13 lakh tonnes of chana procured last year. Moreover, slow procurement progress by government for the new season crop is keeping stock levels higher with the farmers.
According to the fourth advance estimate, India Chana production of 2018-19 is estimated at 10.13 MMT which is 1 per cent higher than the third advance estimate of 10.09 MMT. Final production estimate of 2017-18 is 11.38 MMT.
This year production estimate is lower than last year due to lower acreage. All According to the latest report of ABARES, Australia chickpea acreage forecast for 2019-20 is 3.70 lakh hectares which in 22.11 per cent higher than 2018-19 acreage estimate of 3.03 lakh hectares.
--Chana trading range for the day is 4458-4570.
--Chana gained on short covering amid intermittent rains in Madhya Pradesh and decline in selling at a lower rate by the NAFED.
--However, the availability of chana in the open market is higher due to good production last year coupled with increase in chana imports in 2019.
--NAFED is currently have stock of about 13 lakh tonnes of chana procured last year.
--In Delhi spot market, chana gained by 7.65 Rupees to end at 4422.5 Rupees per 100 kgs.
Courtesy: Kedia Commodities