Week Ahead: Pulses may trade firm on low level buying as wedding season begins

MUMBAI, 14 November (Commoditiescontrol) Pulses market witnessed mixed trend past week but prices of most major pulses are likely to remain firm this week with improved activities in processed pulses as wedding season has already begun when demand of bulk buyers usually increases, said a trade analyst.

However, arrivals of new crop of urad and moong are continuously seen and new tur crop is also soon in good condition which will cap the gains in prices, as per the analyst.

Masoor, White Pea, Chana and Kabuli Chickpea were quoted a tad higher for the week ended 13th Nov 2021 amid fresh buying at lower rates. But Tur prices weakened on thin mills purchase and overseas supplies. On other hand, Urad and Moong traded almost flat on limited activities and ongoing kharif crop arrivals.

Pulses prices in both wholesale as well as retail counters dropped by 10-12% from June peak due to government interventions by free imports, stock-limit options and free pulses distribution provision in its flagship pandemic food aid scheme during festive season.

The market is also facing liquidity crunch, which is also a major for limited buying.

Even after stock limits have been removed, there is a slowdown in the pulses markets across the country as traders still fear that if there is an uptick in commodity prices, the government will enforce stock limits again.

Meanwhile, action in processed pulses remained below expectation despite vegetable prices are reportedly soaring. However, upcoming marriage occasion will also support prices

Past Week’s highlights

# India's Rabi pulses sowing was down by 6.86% as on November 12 to 55.1 lakh hectare vs 59.16 lakh hectare during the same period last year.
# Total area sown with the ongoing Rabi season crops rose 1.23 percent to 178.18 lakh hectare so far, driven by higher acreage in case of oilseeds.
# Statewise Rabi Pulses Sowing As On November 10 Vs Same Period Last Year (Lakh Ha.).

Burma Lemon Tur

In imported variety, Tur Lemon variety of Burma-origin (new) traded lower by Rs 100 last week at Rs 5,900/100Kg in Mumbai due to thin participation from millers.

Similarly, Tanzania origin Arusha and Matwara varieties Tur remained weak each at Rs 5,200-5,250/100Kg and Rs 5,100-5,150, respectively. Malawi Tur also priced lower at Rs 4,650. Mozambique origin gajri variety also offered down at Rs 5,100-5,150. On other hand, Sudan Tur ruled steady at Rs 6,100-6,150.

Vessel M V MAK 1 from Mozambique had discharged 2807 MT till 12th Nov at Mumbai port. Vessel carrying 24,310.821 MT Mozambique Tur and 520.04 Malawi Tur.

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 100 during the week to close at Rs 6,225-6,250/100Kg in bilty trade at benchmark market Akola.

In the overseas markets, Tur Lemon-Linkhey varieties priced at $775 per ton, respectively on a CNF basis in Burma as local and overseas buyers were inactive in the market.

In Tanzania market, Arusha variety Tur was quoted at $665 per ton and Matwara at $675, Malawi Red at $670, Dodoma Tur at $685 and Mozambique gajri Tur at $700 on CNF Nhava Sheva.

Moreover, new Tur crop expected to began from December at Burma. New crop is around 2-2.5 Lakh tonnes. Carryover stock approximately 30,000-40,000 ton.

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

As per market talk, at vidarbh region of Maharashtra, new Tur crop is expected to be good and yield expected to be higher compare to last year due to favourable weather. However, crop arrival likely to began from January end. On other hand, new Tur crop expected to be average in Karnataka, however, harvesting to be delayed. Meanwhile, stockists and farmers holding Tur stock were active to liquidate stock.

Burma Urad

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

On other hand, Burma Urad FAQ variety in Chennai moved higher by Rs 50 at Rs 6,850/100Kg on selected mills purchase. While, SQ variety eased by Rs 50 at Rs 7,400.

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

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

Meanwhile, millers and traders are seen more interested to buy good quality of new crop.

Uttar Pradesh origin new Urad traded at Rs 6,800/100Kg at Naya bazaar pulses market of Delhi.Maharashtra origin new Urad traded in the range of Rs 6,000-7,000/100Kg, as per quality.

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

In the overseas markets, Urad FAQ-SQ varieties traded higher each by $40-60 at $905 per ton and $1045 per ton on a CNF basis in Burma amid fresh buying from India at lower rates.

Around 200 containers of Urad FAQ-SQ traded for India. Urad FAQ-SQ varieties 2021 crop been traded for India at $770 and $900 per metric ton on FOB basis, respectively.

At Burma, new Urad crop may began from December end-January 1st week till march-April. New crop is around 4 lakh tonnes. Carryover stock approximately 1 lakh ton.

As per local trade, one direct vessel for Chennai expected to load pulses next week.

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

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

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 gained by Rs 100 at Rs 5,275-5,300/100Kg for the week at Indore due to better mill buying activity on immediate requirement for crushing.

However, demand in Chana dal and besan reported limited.

Nafed sold procured Chana Rabi-2020 at Rs 5,151-5,213/100Kg in Rajasthan on 12th Nov, 2021. Rabi 2020 sold at Rs 5,001 in Madhya Pradesh. Rabi 2019 sold at Rs 4,701 at Gujarat. Rabi 2018 sold at Rs 4,355 in Maharashtra.

NAFED has invited e-tender for supply of 1,43,903.6 Chana Whole to Food and Civil Supplies Department (FCS), State Government of Uttar Pradesh under Public Distribution System on 15 November, 2021.

Chana prices may get some support 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 marriage occasion will also support prices.

On other hand for international origins, Tanzania Chana, both old-new traded weak each by Rs 50 at Rs 4,750-4,900/100Kg, respectively.

In overseas markets, Tanzania Chana offered at $650 /MT on CNF basis.

Russia and Sudan Kabuli Chickpea priced unchanged each at Rs 4,700-5,000/100Kg and Rs 5,150-5,300 on limitecd buying activities despite supplies of new crop from Sudan. However, import of Russian origin was not viable due to high import duty of 40%.

Indore Kabuli Chana 42-44 & 44-46 counted higher Rs 250 at Rs 9,500/100Kg and Rs 9,350, respectively on fresh trade at lower rates. While, dollar variety Chana priced steady at Rs 8,500-9,000.

Imported Masoor (Mumbai)

Canada crimson variety Masoor along with Australia Masoor at Mumbai gained by Rs 100 each at Rs 7,300/100Kg and Rs 7,000-7,400, respectively due to mills buying on immediate requirement for crushing despite overseas supplies.

Tracking Mumbai market Canada crimson variety Masoor at Mundra-Hajira port also ruled higher by Rs 100-125 each at Rs 7,175/100kg and Rs 7,225, respectively.

Meanwhile, Masoor exports from Canada was down from September month, likely influenced by expectations Australia will set the tone for markets once its crop has been harvested.

As per market sources, Canada crimson variety Masoor priced at $900 per ton and Australia Masoor at Rs 880 per ton.

Moong (Jaipur)

New Moong prices traded unchanged at Rs 6,500-7,400/100Kg at Jaipur market of Rajasthan, as per quality, due to limited millers buying activity.

However, offtake in processed Moong was reported thin.

Rajasthan origin new Moong traded in the range at Rs 4,500-7,100/100Kg, as per quality, at Naya bazaar pulses market of Delhi.

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

The Government of India has approved the target of procurement of 3.61 lakh MT of moong at Rajasthan.

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 gained by Rs 350 each at Rs 5,750/100Kg (40% dal quality) and Rs 6,100 (60% filter quality) at Kanpur market on fresh buying support from local and outstation markets and shortage.

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

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)