Weekly: Tur/Chana Down In Pulses Complex This Week

MUMBAI (Commoditiescontrol) – Tur and Chana prices traded lower for the week ended Saturday (May 14-19) amid subdued millers buying support as demand in processed pulses was slack at existing rates. While, all other raw pulses, such as Urad, Masoor, Moong and White Pea remained unchanged on slow trade activity.



Week Highlights

#DGFT Said As Per Notification No 4 Dated Apr 25 About Matar Import Policy Free To Restricted Only 100% Advance Payment Made Before Apr 25 Will Allowed To Import.
# Kharif Sowing Begins; 54.08 Lakh Hectare Covered So Far.
#IMD: The southwest monsoon is expected to set in over Kerala on 29 May 2018 with a model error of ± 4 days.
# 3rd Adv Est 2017-18 Vs Final 2016-17 (LT). Tur: 41.8 Vs 48.7, Chana: 111.6 Vs 93.8, Urad: 32.8 Vs 28.3, Mung: 19 Vs 21.7, Masur: 15.1 Vs 12.2, Total: 245.1 Vs 231.3.
# DGFT In Notice Today Informed That India Will Import 1.5LT Tur From Mozambique During 2018-19 As Per MoU Between 2 Govts.
# DGFT In A Notification Made Clear That Import Of Yellow Peas Not Just Restricted, But Also Green Peas, Dun Peas, & Kaspa Pea Alsa Fall In Restricted Category As They All Includes Under HS Code 07131000.

Burma Lemon Tur:
After remained firm in last couple of weeks, Tur Lemon variety of Burma origin declined by Rs 50-75 at Rs 3,800/100kg amid sluggish millers' buying activity owing to ongoing mango season and lacklustre sale counters in Tur dal as the month of Ramzan has begun.

Similarly, domestic new tur in bilty trade at Akola also fell by Rs 200 at Rs 4,125-4,150/100Kg.

Sentiments were pressurised due to fresh supply of Tur from Mozambique at cheaper rates and government's clearence for importing 2 Lakh tonnes of tur in FY 2018-19.

Moreover, DGFT in notice informed that India will import 1.5 LT Tur from Mozambique during 2018-19 as per MoU between 2 Governments.

The government has introduced a quota system only for millers and refiners for the import of tur, moong and urad. To avail this quota, dal millers have to submit applications between May 15 and 25. The allocation of quota for each beneficiary will be notified on June 1 and millers have to complete their imports by August 31, the DGFT said. To check imports, the government has asked dal millers to inform them of the import of pulses on a weekly basis.

Earlier, trading companies and wholesalers were also importing leading to increased imports and pressure on prices. Importers and traders imported tur as it was much cheaper in the global market compared to the domestic market.

NAFED Procures (Kharif 2017-18) 857879.57 MT Tur As On 14 May At MSP Prices Of Rs 5450. Gujarat:66554.63, Maharashtra:324925.07, Karnataka:335499.88, Andhra Pradesh:55600, Telangana:75300.

In Kanpur, Maharashtra origin (Hinghanghat/Nagpur), tur dal new Phatka Sortex quality offered lower by Rs 100-125 at Rs 5,750-5,775, new semi-Sortex at Rs 5,650, new regular variety at Rs 5,550 respectively. Trade activities were reported slack from wholesalers and retailers at higher rates and sellers were active in the market.

Latur origin new Phatka variety remained unchanged at Rs 5,800-6,000/100kg in thin trade. Jalna origin new phatka variety also ruled steady at Rs 6,000-6,200/100Kg. Gujarat origin Wasat Phatka variety new priced flat at Rs 6,100-6,400/100Kg.

Farmers from Vidarbha are facing cash crunch as they are yet to receive payments for the tur and chana crops they sold to NAFED through APMC of their respective areas.

Farmer has to first complete online registration and then take the produce to the market yard on allotted date and time. The payment is done directly to the farmer’s bank account through electronic transfer.

Maharashtra Government has again missed its tur procurement target for the season despite an extension granted by the Centre until Tuesday due to lack of storage space.

Farmers are continuing to protest the centre’s decision to import tur from Mozambique.

However, tur prices will get support at lower prices due to costly vegetables and higher prices of mango due to weather concerns. Further, prices of tur may remain volatile in line with upcoming monsoon forecast and governments policies.

Burma Urad:
In Mumbai, Burma urad FAQ variety remained unchanged at Rs 3,500/100Kg due to lacklustre demand from dal mills against ample stocks position and new rabi crop arrivals.

More supply from overseas as government allowed millers to import urad, will surely going to weigh on prices further.

Liquidation of procured stock by government agencies such as Nafed/FCI at lower prices has also exerted pressure.

Moreover, demand for processed urad from consumption centres remained slack at prevailing rates.

Bikaner origin branded Urad dal offered at Rs 4,500-4,700/100Kg. Tiranga brand of Mumbai at Rs 5,400/100Kg.Parivar brand of Jalgaon at Rs 5,200/100Kg.

On other hand, at Chennai, Urad FAQ and SQ variety fell by Rs 50-100 at Rs 4,050/100Kg and Rs 4,650, respectively.

Chana Kantewala (Indore):
At Indore market, Chana prices slipped down by Rs 25-50 at Rs 3,675-3,700/100Kg amid slack trade activity, ongoing domestic arrivals and dull demand in processed chana and besan.

Similarly, Australia origin Chana at Mumbai and Mundra ports drifted down by Rs 50-75 each at Rs 3,450/100Kg and Rs 3,525 following weak cues from futures.

Chana stocks at NCDEX accredited warehouses stood at 26,172 metric tonnes as on 18th May, up from 24,921 metric tonnes in the previous session, the exchange data showed. Akola:23225, Bikaner 1871, Jaipur 1076.

Technically, for NCDEX Chana June Contract, The trend is down and sideways for last few days. Traders by chance short and holding the same can maintain the stop loss at 3700.Resistance will be at 3640-3678. Lower range can be 3602-3564.Support could be fetched at lower range.Bollinger Lower Band is at 3576.The last bottom was at 3482 and the demand zone is at 3565-3482.

Australian chana dal priced lower by Rs 50 at Rs 4,200/100 Kg amid thin trade activity. Domestic chana dal of Pistol brand also ruled weak by Rs 50 at Rs 4,300, Samrat brand at Rs 4,850 and Angel brand at Rs 4,600. While, Chana besan priced steady at Rs 2,730/50Kg. Vatana besan traded unchanged at Rs 2,110/50 Kg and Vatana dal at Rs 3,750.

Kabuli Chana of 42-44 and 44-46 counts declined by Rs.150 each to Rs 5,800/100Kgs and Rs 5,600 respectively at Indore amid dull demand from stockists and exporters despite reducing arrivals.In dollar term, Kabuli chana 42-44 count priced unchanged at $930 per tonne FOB basis Kandla/Nhava-Sheva in ready shipment, while 44-46 count Kabuli chana quoted at $905 per tonne FOB Kandla/Nhava-Sheva.

Kabuli Chana dollar variety traded unchanged at Rs.4,500-5,200/100Kgs at Indore on limited trade and regular arrivals.

Farmers are mostly selling their chana to Nafed as it is buying at MSP of Rs 4,400/100kg while prevailing rates in the spot market are much lower than MSP. Farmers avoid to sell their produce to private traders as they are procuring at very low rates. Although prices in the recent times were mostly bearish, but downside is limited from hereon.

The festival season in the country will start from August and will last till Diwali, which will support chana prices. Further the other major factor that will support chana is poor supply of matar. India government has put matar in restricted category with April-June import limit at only 1 lakh tonne.

Since the available matar stocks is exhuasting, buyers may shift to chana, which is a close substitute for matar. Further chana dal from India is said to exported at $670-680 per tonne FOB Nhava Sheva Port is also positive for chana.

Imported Masoor (Mumbai):
Canada origin crimson variety masoor both in Container and Vessel remained steady in Mumbai amid millers' buying as per requirement and ongoing domestic arrivals. However, arrivals were below expectation. No supply pressure were reported from overseas. Prices likely to get support and ruled firm for long term basis.

Canada crimson variety masoor in container priced at Rs 3,750-3,850/100Kg. Old Canada masoor of vessel also traded flat at Rs 3,550-3,650.

Similarly, Australia Masoor quoted unchanged at Rs 3,950-4,000/100Kg for limited stock.

NAFED Procures (Rabi 2018) 87041.10 MT Masoor As On 17 May At MSP Prices Of Rs 4250. Madhya Pradesh:86646.80, Uttar Pradesh:394.30.

Demand in processed Masoor was reported thin from consumption centres at existing rates as the month of Ramzan has begun. Canada Masoor dal of Bhiwandi mills offered at Rs 4,300/100Kgs, for APMC Vashi market delivery.

In forward business, Canada crimson variety masoor offered at $425 per ton in container on CNF basis Nhava- Sheva For June-July shipment. Australia nugget variety masoor offered at $450 per ton in container on CNF basis Nhava- Sheva For June-July shipment.

Imported White Pea (Mumbai):
Canada origin White Pea at Mumbai traded steady to firm at Rs 3,321-3,331/100Kgs amid limited buying activity and slow supply from overseas as India put imports of matar (peas) under the restricted category and fixed a cap for its in-bound shipments up to one lakh tonnes for a period of three months. Negligible stock of Russia and Ukraine White Pea were reported.

Moreover, business activities in Matar dal and besan were reported good at current rates from consumption centres.

Vessel Aggeliki B carrying 24,200 MT Ukraine Yellow Pea expected to arrive at Kolkata on 27 May 2018.




Moong (Jaipur):
Moong prices quoted steady at Rs 5,100/100Kg as per quality in Jaipur market during the week on limited millers' buying at prevailing rates.

Similarly, Moong dal prices also ruled stable at Rs 6,100/100Kg as per quality.

According to market sources, prices of moong are likely to trade range bound due to adequate stock position and fresh supplies of summer crop in Madhya Pradesh, Uttar Pradesh and Gujarat.

Meanwhile, government agencies are also active to sale their procured stock in Rajasthan, Madhya Pradesh, Andhra Pradesh, Karnataka and Maharashtra.

(By Commoditiescontrol Bureau; +91-22-40015513)