Weekly: Pulses slips on listless demand in dals, new arrivals, overseas supplies

MUMBAI, 18 Sep (Commodities control) – Tur, Urad, Masoor, Chana, and Kabuli Chickpea declined for the week ended 18 Sep 2021 amid dull mills purchase and overseas supplies. On other hand, Moong-White Pea prices traded almost unchanged due to limited activities.

Meanwhile, demand and sales in processed pulses witnessed thin activity and below expectation ahead of the festival season from retail counters.

Trade activity was less due to rains in major trading and production centres.

Past Week’s Highlights

# India Kharif Pulses Sowing up 2.05 % As On Sep 17 At 140.72 Lakh Ha Vs 137.89 Last Year. Tur: 50.02 Vs 48.18, Urad: 39.43 Vs 38.65, Moong: 35.25 Vs 35.38, Other Pulses: 15.45 Vs 15.12.
# India 2021-22 state-wise Kharif pulses sowing Sep 15. Click here
# India's 2021-22 Sowing Area of Kharif Crops Down 0.83% YoY So Far: Govt. Click here
# US origin lentils will be taxed at 30 percent. Click here
# Last date for import of Tur, Urad extended till 31 January 2022. Click here
# MCX Sees Dip in Futures Turnover amid Bullion Trade Losing Sheen; Options Trade Up. Click here
# NeML Inks MoU with Govt to Develop Farmers' Database. Click here
# India Negotiating with African Nations for Importing Pulses: Minister. Click here
# IPGA Hails Govt's Decision to Extend Free Import Policy for Pulses. Click here
# Pulses Import: DGFT Notifies Procedure for Refund of Application Fees. Click here
# Retail Inflation Softens to 5.3% in Aug as Food Prices Ease. Click here
# India's Kharif Food grain Production to Touch Record 150 million tonnes this Year: Govt. Click here
# Masoor harvest in US expected to drop 31%. Click here
# White Pea harvest in US plunges 44%. Click here
# Canada White Pea ending stock higher to 4,79,000 MT. Click here
# Chickpea production in the US is down 29% from last year. Click here

Burma Lemon Tur

Tur Lemon variety of Burma-origin (new) traded lower for second straight week by Rs 50 for the week at Rs 6,450/100Kg in Mumbai due to thin mills purchase activities and consistent supply of overseas origin raw Tur.

Availability of Africa Tur at lower rates in ready business and also upcoming overseas supplies from Africa at cheaper rates are the main reason for the weak prices.

In other overseas origins’ Tanzania Arusha variety Tur and Mozambique Gajri variety also ruled weak at Rs 6,050-6,150/100Kg and Rs 6,000, respectively. Sudan Tur also declined and closed the week at Rs 6,550.Matwara Tur priced at Rs 5,950.

Similarly, the domestic variety of Tur down Rs 50 during the week to close at Rs 6,900-6,950/100Kg in bilty trade at benchmark market Akola.

In overseas origins Tur Lemon and Linkley varieties traded weak at $900 /MT CNF India basis in Yangon market .In Tanzania market Arusha variety Tur quoted at $765 per ton on CNF Nhava Sheva for Oct shipment. Mozambique tur at $750, Matwara Tur at $750, Malawi red Tur at $675 per tonne and Sudan Tur at $900.

As per market talk, Tur prices likely to trade range-bound or may remain under pressure for short term period due to overseas supply at cheaper rate during Sep-Oct. Demand in processed pulses expected to be very less during Pitru Paksha ( from 20th Sep-6th Oct.) Moreover, stockiest and farmers holding Tur stock in anticipation of price rise are now active to liquidate stock and take position in other kharif crops arrivals for which will begin soon.

Burma Urad

Prices of Burma Urad FAQ variety fell by Rs 25 at Rs 7,125/100Kg in Mumbai on slack mills purchase at prevailing rates due to slow offtake in processed Urad, regular imports from overseas and increase in arrivals of new Kharif crop.

Moreover, Nafed is liquidating its old stock in Madhya Pradesh, Uttar Pradesh and Rajasthan.

Similarly, Burma Urad FAQ-SQ varieties in Chennai also traded flat to Rs 6,900/100Kg and Rs 8,000, respectively.

However, there are reports that quality and yield is likely to be affected due to rains during harvesting in Madhya Pradesh, Uttar Pradesh and Maharashtra. Moisture content is higher and dagi quality in new-crop arriving in the market. Millers-traders were interested to purchase good quality new crop.

New Kharif Urad traded in the range of Rs 6,000-7,300/100Kg as per quality in Maharashtra.

At Sagar market of Madhya Pradesh, new Urad traded at Rs 6,500/100Kg with moisture contain 15% and Rs 5,500/100Kg with 18-20% moisture contain quality.

In Vidisha market of Madhya Pradesh, new Urad traded at Rs 6,000/100Kg with 2-3% moisture and Rs 5,000 with 6-7% moisture. If rain continue further it will damage upcoming Urad crop. Quality is bad is not to procure stock. Only 10-15Kg dal quality comes in 1 bags =100Kg.

At Lalitpur market of Uttar Pradesh, new Urad traded in the range of Rs 5,500-7,000/100Kg with arrivals of 500-700 bags. Arrivals of summer crop Urad was traded in the range of Rs 6,500-6,600/100Kg and average quality at Rs 6,000.

Maharashtra origin new Urad traded at Rs 7,600/100Kg at Guntur market.

In the overseas markets, Urad FAQ-SQ varieties ruled weak at $930 and $1090 per ton on a CNF basis in Burma as no buyers from India were active even at lower rates. Sellers were active as local currency ruled strong against US dollar. Moreover, the government extend free import policy for Tur-Urad till 31 January 2022.

Urad is expected to trade flat in during the arrival period of new Kharif crop which is likely to last till next 15-20 days. Arrivals of new kharif urad crop and regular imports from Burma are likely to keep price under pressure .But at the same time 50-60% damage in quality and yield in new kharif Urad crop due to heavy rains and pest attack will support the prices at lower levels.

Chana Kantewala Indore

Chana prices extended fall for second straight week by Rs 50 at Rs 5,450-5,475/100Kg for the week at Indore amid thin mills trade.

Moreover, the Chana dal and besan demand scenario remains quiet.

Stockiest holding Chana stock in anticipation of price rise were active to liquidate stock as arrivals of other Kharif crop has began and they are interested in shifting their position to other crops such as soybean for higher returns as they expect prices of soybean will remain firm relative to chana price .There are reports of negligible carry over soybean stock and damage to new crop which may lead to higher soybean prices in near term.

Meanwhile, Nafed is actively liquidating its stocks of Chana at various centers. FCI is also active in selling stock procured in Maharashtra.

Nafed sold Chana, procured in Rabi-2019, at Rs 5,011/100Kg and Rabi-2020 at Rs 5,201-5,215 in Madhya Pradesh on 16th Sep, 2021. In Rajasthan Rabi-2020 was sold at Rs 5,250-5,267. In Andhra Pradesh, Rabi-2020 sold at Rs 5,100.

For international origins, Tanzania Chana both old-new traded at Rs 5,125/100Kg and Rs 5,325, respectively.

In forward business, Tanzania Chana priced at Rs 5,400/100Kg for September-October shipment and Rs 5,450/100Kg for October-November shipment.

Sudan Kabuli Chickpea priced lower by Rs 100 at Rs 5,600-5,850/100Kg on thin purchase and fresh supplies of new crop from Sudan. On other hand, Russia origin Kabuli Chickpea ruled steady at Rs 5,100/100Kg due to limited stock as fresh imports of Russian origin are not competitive as it attracts import duty of 40%.

Indore Kabuli Chana 42-44 & 44-46 count widened losses by Rs 250 each at Rs 9,800/100Kg and Rs 9,650, respectively. Dollar variety Chana also fell by Rs 200 to Rs 8,800-9,400.

Chickpea production in the United States is down 29% from last year at 137,600 MT, according to the latest USDA production estimates.

Production of Australia Chickpea is forecast to increase by 15% to 8.44 lakh tonnes during the year 2021-22.

Chana prices may remain under pressure due to liquidation of old stock by stockiest and big farmers as they intend to shift their position to soybeans which may give better return in near term.But down side from here is limited as we may see pick-up in demand after pitru paksha which end on 6th October.Seed demand for Rabi sowing will also support chana prices.

Imported Masoor (Mumbai)

Canada crimson variety Masoor along with Australia Masoor at Mumbai remained steady to weak at Rs 7,550/100Kg and Rs 7,650, respectively as buyers were side lined at higher rates due to dull offtake in processed Masoor. Resellers were active in the market.

Tracking Mumbai market Canada crimson variety Masoor at Hajira-Mundra port also dropped by Rs 75-100 at Rs 7,350-7,425/100kg and Rs 7,325-7,375, respectively.

Moreover, India has allowed one-time import of Masoor from Russia for a period of six months.

However, Import Customs Duty on USA Origin Masoor has been increased from @22% to @33% w.e.f 17.09.2021. On other hand, Import Customs Duty on all other Origin Masoor (including Canada, Australia) remains the same i.e @11%.

Higher prices in the international market on the apprehension of lower crop output in Canada and USA, likely to support Masoor prices at lower rates.

US Masoor production is expected to slide from 336,000 to 231,000 MT.

Canada Masoor production estimates down 31% for the year 2021 and 25 percent below the five-year average.

Production of Australia Masoor is likely to increase by 0.79% to 6.39 lakh tonnes during the year 2021-22.

Vessel M V MELODY carrying 10048.180 MT of Australia Masoor is expected to arrive at Mumbai port on 19th September, 2021.

Vessel M V PERSUES carrying approximately 22,550 MT of Canada red Masoor is arrived at Mundra port on 8th September.

Masoor prices are likely to remain range-bound due to consistent supply from overseas markets but reports of lower crop in US and Canada crop and higher MSP for upcoming Rabi masoor crop in India to restrict down side. Current rainfall is said to be beneficial for upcoming rabi crop sowing, likely to begin from next month. Beneficial rains and higher prices received by farmer for plast year crop will lead to higher sowing in Masoor for upcoming Rabi crop. In near term this will boost Seed demand expected from October.

Moong (Jaipur)

Moong prices traded unchanged at Rs 6,600-7,250/100Kg at Jaipur market of Rajasthan, as per quality, on thin mill buying activity as demand in processed Moong reported thin and regular new kharif crop arrivals at producing centers.

On other hand, new kharif Moong traded in the range of Rs 5,500-6,500/100Kg, as per quality in Rajasthan.

Local stockiest and millers along with outstation millers from Punjab, Haryana, Jaipur, Maharashtra and Mumbai were active in purchasing new Moong from Karnataka and other states.

New kharif Moong traded in the range of Rs 6,500-7,000/100Kg, as per quality, at Karnataka, Maharashtra and Telangana.

Summer crop Moong traded in the range of Rs 6,000-6,600/100Kg, as per quality at Madhya Pradesh.

Overall, improved arrivals of new kharif Moong in producing centers, regular arrivals of summer crop Moong and overseas supplies will keep prices under check in near term.

White Pea (Kanpur)

White Pea prices traded flat for second straight week at Rs 5,750/100Kg (40% dal quality) and Rs 6,100 (60% filter quality) at Kanpur market on limited buying support from local and outstation markets despite shortage.

Similarly, Vatana besan and dal remained stable each at Rs 4,800/50Kg and Rs 6,900, respectively.

Canada's White Pea ending stock was pegged at 479,000 MT, more than double the 233,000 carried over from the 2019-20 marketing campaign. Commercial inventories jumped from 96,000 to 212,000 MT, while product on farms almost doubled from 137,000 to 267,000 MT.

The U.S. White peas harvest is expected to total in 2021 is forecast at 551,000 MT, down 44% from last year.

In near term White pea price likely to remain range bound as there is no International supply due to ban imposed by the government and demand is also limited as prices are trading at premium to chana.

(By Commodities control Bureau; +91 9820130172)