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Technically Chana market is under fresh selling as market has witnessed gain in open interest by 4.65% to settled at 39830 while prices down 18 rupees.
Now NCDEX Chana is getting support at 4276 and below same could see a test of 4241 level, And resistance is now likely to be seen at 4353, a move above could see prices testing 4395.
Chana on NCDEX settled down by 0.42% at 4310 due to lack of demand and expectation of fresh arrivals. Meanwhile, abundant availability of prevailing stock with government agencies kept prices under pressure.
On the other hand, the National Agricultural Co-operative Marketing Federation of India Ltd (NAFED) continued to offload Chana in the physical markets. NAFED sold 83,454 tons of gram in Andhra Pradesh and 42,049 tons in Telangana.
Area under chana has decreased drastically in Maharashtra and Karnataka. Area under chana is lower by 11.32lakh ha so far on all India basis. As season is heading towards an end now, any huge make up is unlikely now.
Condition for rabi crop is not good and fear of lower rainfall is increasing for next kharif season. So, all pulses are likely to move up in the second half of the year. Farmers had covered over 100 lakh ha area last year.
Chana area production have been pegged at 417 thousand ha; 470 thousand MT in second advance estimate released on 4th Jan2019 by AP govt in 2nd advance estimate. Yeield has been pegged at 1126 kg per ha.
However, actual yield received by farmers is lower and crop seems affected by dry spell. The ministry has restricted imports of peas “for the period from January 1, 2019, to March 31, 2019,” the Directorate General of Foreign Trade (DGFT) said in a notice.
Trading Ideas:
–Chana trading range for the day is 4241-4395.
–Chana prices dropped due to lack of demand and expectation of fresh arrivals.
–Meanwhile, abundant availability of prevailing stock with government agencies kept prices under pressure.
–NCDEX accredited warehouses Chana stocks dropped by 141 tonnes to 12103 tonnes.
–In Delhi spot market, chana dropped by 19.4 Rupees to end at 4180.6 Rupees per 100 kgs.
Courtesy: Kedia Commodities
Source: Commodityonline.com
