Week Ahead: Pulses market unlikley to see further downside during Diwali festivals

MUMBAI, 1 November (Commodities control) Indian pulses market is unlikely to see further downside during Diwali festivals as vegetable prices are soaring and retail demand in processed pulses is expected to remain firm which will lift sentiments among the traders, whole sellers and other market participants.

Past Week’s highlights

# India Rabi Pulse Sowing down by 22.89 % as on October 29 to 9.7 lakh Ha vs 12.58 last year at the same period. Clickhere
# India's Total Acreage of Rabi Crops up 2% y/y at 43.29 lakh hectare so far. Click here
# UP govt mulling to provide free ration till March 2022 : Reports. Click here
# Myanmar: Pulses prices will rise in dollar term as kyat strengthens. Click here
# Imports of tur, urad from Myanmar may drop as sellers seen reluctant after appreciation in kyat. Click here

Burma Lemon Tur

In imported variety, Tur Lemon variety of Burma-origin (new) traded lower by Rs 50 last week at Rs 6,000/100Kg in Mumbai due to thin participation from millers.

Similarly, Sudan Tur also offered down at Rs 6,150-6,200. On other hand, Tanzania origin Arusha and Matwara varieties Tur traded almost flat at Rs 5,400-5,450/100Kg and Rs 5,400, respectively as sellers inactive at lower rates. Mozambique origin gajri variety priced unchanged at Rs 5,350/100Kg.

Availability of African Tur-Tur dal at lower rates in ready business due to average quality and also regular overseas supplies from Africa at cheaper rates are likely to keep prices under pressure, as per the market observers.

In domestic market, Tur slipped by Rs 75-100 during the week to close at Rs 6,325-6,350/100Kg in bilty trade at benchmark market Akola.

In overseas markets Tur Lemon and Linkley varieties offered unchanged each at $840 /MT and $850/MT, respectively on CNF India basis in Yangon market.

Vessel M V IDM DOODLE from Tanzania had discharged 2227 MT till date at Mumbai port. Vessel is carrying 7755.48 MT Tur in bags and 2,977.501 MT desi Chickpea.

As per market view, new Tur crop expected to trade below MSP of Rs 6,300/100Kg. In forward trade, new Tur crop of Muddebihal-Talikoti market of Karnataka traded at Rs 6,300/100Kg for Chhattisgarh delivery for December 01-10. On other hand, yield losses likely at Bijapur line.

The government extended the free import policy for Tur-Urad till 31 January 2022.

Burma Urad

Prices of Burma Urad FAQ variety slipped by Rs 200 at Rs 6,850/100Kg in Mumbai due to thin mills buying as there is slow off-take in Urad dal, liquidity crunch and imports from overseas.

Similarly, Burma Urad FAQ-SQ variety in Chennai fell by Rs 100-300 at Rs 6,800/100Kg and Rs 7,425-7,450.

Settling of forward deals in imported Urad due to month end against October month has kept prices under pressure at Chennai.

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

Meanwhile, regular arrivals of new Kharif Urad is being witnessed in domestic market. The millers and traders are seen more interested to buy good quality of new crop. Arrivals in domestic market will be less and negligible as major market will be closed during 1st week of November for diwali festive.

Damaged and average quality arrivals of new Urad has pressurised the Urad prices.

Maharashtra origin new Urad traded in the range of Rs 6,000-7,000/100Kg, as per quality for Naya bazaar pulses market of Delhi.

Maharashtra origin new Urad traded at Rs 7,200/100Kg for Guntur delivery.

In the overseas markets, Urad SQ-FAQ varieties priced at $1060 per ton and $920 per ton on a CNF basis in Burma. Meanwhile, no actual trade in any pulses was witnessed as no overseas buyers or local sellers were active.

With appreciation in Myanmar’s currency against dollar, sellers of tur and urad are said to be reluctant to liquidate their stocks as they find less realization.

With strengthening of kyat, Myanmar currency, prices of pulses in the southeast Asian country will rise in dollar term in coming days.

Myanmar Kyat was trading 1775 Vs 1920 last week (16th Oct) against the US dollar in the local market.

Already, direct container vessels carrying urad regularly depart from Yangon for Chennai.

The government of India has extended the free import policy for Tur-Urad till 31 January 2022.

The government laid down the procedure and modalities for import of 2.5 lakh tonnes of urad and 1 lakh tonne of tur from Myanmar for FY 2021-22.

Chana Kantewala Indore

Chana prices remained unchanged at Rs 5,175-5,200/100Kg for the week at Indore amid limited mills trade activity.

Meanwhile, demand in Chana dal and besan witnessed below expectation from retail counters despite festive season is going on..

Nafed sold procured Chana Rabi-2020 at Rs 4,901-4,925/100Kg in Rajasthan on 29th Oct, 2021. In Madhya Pradesh, Rabi-2020 sold at Rs 4,850-4,875.

Nafed is actively liquidating its stocks of Chana at various centres. However, Nafed old procured Chana stock of R-2018 and R-2019 was reported negligible in Madhya Pradesh and quality of R-2020 was average.

Rabi crop sowing 18% up in Rajasthan Y/Y, Chana down 7.35% as on 29 Oct, 2021.

On other hand for international origins, Tanzania Chana, both new traded firm by Rs 25 at Rs 4,950/100Kg. While, old variety ruled flat at Rs 4,800.

Russia and Sudan Kabuli Chickpea priced higher each by Rs 100 at Rs 4,750-5,000/100Kg and Rs 5,150-5,300 on buying activities despite supplies of new crop from Sudan. However, import of Russian origin was not viable due to high import duty of 40%.

Similarly, Indore Kabuli Chana 42-44 & 44-46 counted higher Rs 50-100 at Rs 9,250/100Kg and Rs 9,150, respectively on fresh trade at lower rates. While, dollar variety Chana priced steady at Rs 8,500-9,000.

Chana prices may get some support at lower rates on anticipation low acreage in the ongoing rabi season as farmers are seen taking more interest in cultivation of mustard seed and they may divert some areas of chana to mustard seed farming. Moreover, upcoming marraige occasion will also support prices.

Imported Masoor (Mumbai)

Canada crimson variety Masoor along with Australia Masoor at Mumbai widened losses by Rs 100-150 each at Rs 7,200/100Kg and Rs 7,150-7,300, respectively amid thin mills purchase as offtake in processed Masoor is thin and overseas supplies.

Tracking Mumbai market Canada crimson variety Masoor at Mundra-Hajira port also ruled weak by Rs 25-50 each at Rs 7,000-7,050/100kg and Rs 7,050-7,125, respectively.

International Masoor markets ended the week on an easier note against increased competition for available demand in key destinations.

This was most obvious in India where resellers continue to take profits and current values in that country's domestic market are uncovering stocks on farms.

Importers also believe that once new crop red Masoor are available from Australia, prices will decline because of competition between it and Canada.

Moong (Jaipur)

New Moong prices traded higher by Rs 200 at Rs 6,500-7,400/100Kg at Jaipur market of Rajasthan, as per quality, due to millers buying activity on immediate requirement for crushing.

However, offtake in processed Moong was reported limited.

Rajasthan origin new Moong traded higher at Rs 4,500-6,800/100Kg, as per quality, at Naya bazaar pulses market of Delhi.

Procurement by government agencies at MSP in near future will support Moong prices.

Moong to be procured in Rajasthan from 1st November. The Government of India has approved the target of procurement of 3.61 lakh MT of moong.

Centre sanctioned procurement of 6,432 MT Moong in Telangana, 3,367 MT Moong in Tamil Nadu, 30,000 MT in Karnataka, 15,835 MT in Haryana and 1,315 MT in Andhra Pradesh under price support scheme for Kharif 2021-2022.

White Pea (Kanpur)

White Pea prices widened losses by Rs 50 each at Rs 5,400/100Kg (40% dal quality) and Rs 5,750 (60% filter quality) at Kanpur market on dull buying support from local and outstation markets despite shortage.

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

Canada's 2021-22 dry pea production may fall to 2.5 million tonnes (Mt), down 45 percent from 2020-21, according to AAFC’s latest outlook report, published on Oct 20.

Activity in white pea market is likely to remain thin as limited stock is available and no fresh supply is expected due to import restriction while demand is restricted due to lower chana prices.

(By Commodities control Bureau; +91 9820130172)