Weekly: Pulses Extend Fall On Listless Demand In Dals, Cash Crunch

MUMBAI (Commoditiescontrol) – Most pulses such as Tur, Urad, Masoor, Chana, Kabuli Chana and Moong widened losses for second straight week during the week ended Saturday (Nov 25 - 30 ) on sluggish buying support amid liquidity crunch. While, Green Pea ruled firm on low level buying activity. On other hand, White Pea traded steady on thin trade volume.

As per market view, demand in pulses expected from mid of december from millers/traders. Meanwhile, sufficient availibility stock of finished goods were reported in Wholesale/retailers counters and also they are purchasing as per requirement due to liquidity crunch and volatile in prices.

Week Highlights

# India Rabi Pulse Sowing down by 10 % as on November 29 to 89.23 lakh Ha vs 99.15 last year at the same period.
# TNCSC Issues Tender To Purchase 60000 MT Tur Dal/Masoor Dal. Last date for online submission upto 12.12.2019.
# IMD/Skymet Predicts Rain In North/South India.

Burma Lemon Tur:

Tur Lemon variety of Burma origin widened losses by Rs 150 at Rs 4,775-4,800/100Kg in Mumbai amid sluggish millers trade activity due to average quality and cash crunch.

Similarly, domestic Tur in bilty trade at Akola also traded weak by Rs 175-200 at Rs 5,400-5,425/100Kg.

Arrivals of new Tur in low quantity was witnessed at Solapur/Dahod market. However, quality reported average.

Demand and sale counters in Tur dal was reported lackluster from retail/wholesale counters.

Sentiments are under pressure as harvesting of new domestic Tur in Karnataka expected from mid of December month onwards. Overall Tur crop condition is good and crop is delayed by about a month.

However, yield of Tur in Karnataka is likely to be low in some areas and impact on quality cannot be ruled out due to unseasonal and excess rainfall.

Buyers were cautious due to supply from overseas, stocks in hands of private traders and also Nafed holding old procured stock.

In Burma, arrivals of new Tur have begun at the local market albeit in a low quantity. New Tur crop is expected to be good this year with around 3 - 3.5 lakh tonnes. While there is carry over stock of approximately 30000-40000 tonnes of 2017-18 and around 10000 tonnes of 2019.

Latur origin new Phatka variety declined by Rs 100-200 at Rs 8,000-8,200/100Kg for spot. Gujarat origin Wasat new phatka variety at Rs 8,400-8,600/100Kg, Khamgaon origin new Phatka variety at Rs 7,800-8,000/100Kg (spot), Jalna origin new phatka variety at Rs 8,300-8,500/100Kg (spot) and Solapur origin new phatka variety at Rs 8,000-8,200/100Kg (Spot).

As per trade sources, Tur prices likely to get support once arrivals of new Tur begans in domestic market.

Burma Urad:

Burma Urad FAQ new/old variety continued down journey by Rs 500-600 each to Rs 6,500/100Kg and Rs 6,350, respectively at the Mumbai market as millers were less interested in purchasing at prevailing rates amid liquidity crunch, slow off-take in processed Urad and supply from overseas under allocated import quota as well as against stay order in Chennai.

Moreover, settlement of many forward outstanding trades for November against which delivery is still due, while buyers hesitation in taking delivery owing to cash crunch and sluggish demand in processed Urad also pulled prices lower.

Moreover, millers in southern market will prefers to crush new domestic Urad as arrivals of new Urad likely to began in various district of Andhra Pradesh and will continues till march-April.

Similarly, In Chennai, Urad FAQ/SQ also drifted down by Rs 500-600 to Rs 6,650-6,700/100Kg and Rs 7,650-7,700, respectively in ready delivery as per condition.

Selective millers are interested to purchase Urad SQ variety to meet their immediate requirement for crushing and making Urad gota as demand from Wholesale/retail counter reported good.

Meanwhile, urad sowing in Burma is going on and expected to remain higher compared to last year due to better prices. Arrivals may start from December-end to January in the local market. While there is carry over stock of around 1 lakh tonnes of 2019 and around 10000 tonnes of 2018.

Bikaner origin branded Urad dal slipped at Rs 9,500-9,700/100Kg for spot. Tiranga brand of Mumbai also traded lower at Rs 9,700/100Kg for Mumbai delivery, Parivar brand of Jalgaon at Rs 9,400/100Kg for spot.

Chana Kantewala (Indore):

Chana prices remained weak by Rs 50-75 at Rs 4,350/100Kg in Indore following weak cues from futures and excess availibility of stock with Nafed and private hands.

Moreover, sentiments continue to run low as Nafed plans to sell around ten lakh tonnes of its procured stock over next three months. The Government agency would release this stock, state wise over the mentioned period.

Australia origin Chana in ready business at Mumbai fell by Rs 100 at Rs 4,200/100kg due to average quality supply despite very limited availability.

Similarly, Tanzania origin Chana also declined by Rs 100-125 to Rs 4,150.

Burma origin chana also remained weak by 125 at Rs 4,150/100Kg.

Chana for December delivery on National Commodity and Derivatives Exchange (NCDEX), settled firm 0.5 percent or Rs 22 at Rs 4,393/100kg. Earlier, in the day, the contract hovered in the range of 4,343 and 4,395 on Friday.

Open interest for NCDEX December contract decreased to 33450 lots against 36400 lots.

On other hand, open interest for January contract increased to 27580 lots against 27210 lots.

Open interest of top 10 trading clients in the long side was 38570 MT whereas the short position of top ten clients was 38100 MT. The net position of top 10 clients was net long by 470 MT.

Australian chana dal remained weak by Rs 50 at Rs 5,150/100 Kg for spot. Domestic chana dal of Pistol brand also ruled weak at Rs 5,350 for Spot, Angel brand at Rs 5,550 for Spot, Samrat brand at Rs 5,550 for Spot. While, Chana besan traded unchanged at Rs 3,150/50Kg.

In Mumbai, Russia/Sudan/Ethiopia/Burma origin kabuli chana slipped by Rs 100-150 each at Rs 4,075-4,100/100Kg, Rs 4,200, Rs 4,100 and Rs 4,250, respectively amid dull buying from besan flour millers, following weak cues in Chana despite cheaper prices as compared to White Pea.

Kabuli chana of 40-42, 42-44 and 44-46 counts declined by Rs 250 each at Rs 6,300/100Kg, Rs 6,100 and Rs 6,000, respectively at Indore market amid limited local buying activity.

Dollar variety Kabuli Chana slipped by Rs 200 at Rs 5,300-5,900/100Kg at Indore on slack trade activity.

In forward business, Russia Kabuli Chickpea offered at $395 per ton in container on CNF basis JNPT for ready shipment.

As per market sources, recovery in rabi Chana sowing may dampened the sentiments. Traders will keep close watch on weather condition during January-February month and also on Nafed policy on liquidation old procured stock.

Imported Masoor (Mumbai):

Canada crimson variety Masoor in vessel/container along with Australia Masoor declined for second straight week by Rs 25-50/100Kg at Mumbai due to slow millers trade activity amid cash crunch, fresh supply in bulk vessel from Canada at Mundra port and following weak cues in other pulses.

Canada origin red Masoor in vessel/container traded down by Rs 25-50 each at Rs 4,275/100Kg and Rs 4,350, respectively.

Similarly, Australia origin red Masoor also ruled weak by Rs 50 to Rs 4,400/100Kg.

Canada Masoor dal Khopoli spot traded at Rs 5,200/100Kg.

Prices of Masoor likely to get support as rabi Masoor sowing lagging behind by 13.38%, hike in MSP, increased in consumption due to cheaper pulses and no supply pressure from overseas in Mumbai.

In forward business, Canada crimson variety masoor new offered at $468 per ton in container on CNF basis JNPT for Nov/Dec shipment.

Australia Nugget variety masoor new offered at $470 per ton in container on CNF basis JNPT for Dec/Jan shipment.

Imported White Pea (Mumbai):

Canada and Ukraine origin White Pea ruled unchanged at Mumbai because of thin trade activity from local and outstation traders/millers at prevailing rates and supply from overseas.

Canada and Ukraine White Pea remained steady each at Rs 4,621/100Kg and Rs 4,475-4,525, respectively.

Moreover, demand in matar dal/besan was thin at prevailing rates. Vatana besan priced flat at Rs 3,051/50 Kg. While, Vatana dal also lower by Rs 50 at Rs 5,250.

Crushing in Chana/Kabuli Chana has increased due to cheaper prices and easy availability compared to White Pea.

Moong (Jaipur):

Moong prices traded weak at Rs 6,400-6,500/100Kg as per quality at Jaipur market due to slow millers trade activity from local and outstation only to meet immediate requirement due to cash crunch, ongoing arrivals and amid thin demand and sale counters in processed Moong.

Similarly, Moong dal prices lower at Rs 8,200-8,300/100Kg depending on the variety.

On other hand, In Delhi, Rajasthan new kharif Moong traded firm at Rs 6,600-7,000/100Kg.

Canada Green Pea (Mumbai):

Canada origin Green pea moved higher by Rs 100 at Rs 7,700-8,000/100Kg at Mumbai amid better buying activity against limited ready stock.

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