Mumbai, 05 Dec (Commoditiescontrol): Burma-origin urad prices continued to decline in the domestic market on Thursday, weighed down by tepid miller demand and a surge in new crop arrivals. In Myanmar, the local market saw a further drop in the prices of Special Quality (SQ) and Fair Average Quality (FAQ) urad, largely attributed to the poor quality of stock entering the market. New crop urad (FAQ) for March delivery is being quoted at approximately 3,500,000 Myanmar Kyat (MMK), aligning closely with current market rates. This proximity has prompted stockists to liquidate ready-delivery stocks and shift towards forward trades, reducing their working capital needs and pressuring prices further.
On a Cost, Insurance, and Freight (CIF) India basis, prices for both SQ and FAQ varieties dropped by $5 per metric ton. However, Chennai’s resale market reported no change in prices, reflecting subdued trading activity. In Myanmar, SQ prices declined by 10,000 MMK to 3,830,000 MMK per ton, while FAQ fell by the same margin to 3,450,000 MMK per ton. CIF quotes stood at $1,010 per metric ton for SQ and $915 for FAQ, signaling a marginal softening of prices.
In India’s domestic markets, price movements were mixed. Desi urad prices rose slightly in Guntur and Vijayawada but remained stable in key mandis like Indore, Jaipur, and Jalgaon. Chandausi saw a minor decline, while other markets maintained steady rates.
Recently released data by the Overseas Agro Trade Association (OATA) has revealed a continuous decline in Myanmar’s urad exports. November shipments were recorded at 56,436 metric tons, down from 62,379 metric tons in October and significantly below August’s peak of 95,763 metric tons. Year-to-date exports reached 834,180 metric tons, with an average monthly shipment of 75,835 metric tons.
Market analysts predict continued pressure on urad prices due to ample supplies of Burmese ready-delivery stocks and a well-stocked domestic market from India’s ongoing Kharif harvest, which is expected to sustain supply for the next three to four months. Additionally, Brazilian urad shipments are projected to reach 50,000-60,000 metric tons, with arrivals anticipated at Indian ports by April 2025. Historical trends suggest negative price returns for urad during the November-February period, further dampening market sentiment.
Spot Urad Prices In Key Indian Markets:
(By Commoditiescontrol Bureau; +91-9820130172)
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