Week Ahead: Pulses market may witness improved buying at lower level

MUMBAI, 22 November (Commoditiescontrol) Pulses market may witness improved buying this week at lower level as prices of major pulses dropped last week amid selling pressure.

Major pulses, such as Tur, Urad, Moong, Chana, Kabuli Chickpea, Masoor and White Pea slipped past week ended 20th Nov 2021 amid selling pressure due to liquidity crunch and also sluggish demand in processed pulses.

Importers are facing losses and were active in selling due to liquidity crunch as they has to release import cargo, a trade analyst said today.

On the other side, action in processed pulses remained below expectation despite higher vegetable prices and beginning of the wedding season.

Past Week’s highlights

# India Rabi Pulse Sowing down by 0.09 % as on Nov 18 to 76.12 lakh Ha vs 76.19 last year at the same period. Click here
# Area under rabi crops reaches 260.66 lakh ha, up 8.9% -y/y. Click here
# Statewise Rabi Pulses Sowing Till Nov 17, 2021. Click here
# By mid-November of the current financial year, pulses import crossed 15.11 lakh tonnes. Click here
# Govt allows fumigation waiver for lentil import till March 2022. Click here
# Canada's 2021-22 Dry Peas Supply may Fall 37% y/y to 3.1 million tonnes. Click here
# India’s exports of agricultural, processed food products rise nearly15% during April-October. Click here
# PM announces to repeal 3 agri laws, a committee on MSP will be formed. Click here
# Retail prices of pulses stable on account of pre-emptive, proactive measures: Govt. Click here
# TNCSC issues e-tender to purchase 2,15,48,060 sets of grocery item (i.e 500 grams of Moong Dhall, 250 grams of Bengal Gram and 500 grams of Urad Dhall). Click here
# Pulses arrived at JNPT in October month. Click here

Burma Lemon Tur

In imported variety, Tur Lemon variety of Burma-origin (new) continued to trade weak by Rs 50 at Rs 5,850/100Kg in Mumbai due to thin participation from millers.

Similarly, Tanzania origin Arusha and Matwara varieties Tur ruled weak each at Rs 5,050-5,100/100Kg and Rs 5,000-5,050, respectively. Mozambique origin gajri variety also offered lower at Rs 5,000-5,050. Malawi Tur also declined at Rs 4,600. Sudan Tur also fell at Rs 6,000.

In domestic market, Tur extended fall by Rs 50 during the week to close at Rs 6,175-6,200/100Kg in bilty trade at benchmark market Akola.

Availability of African Tur-Tur dal in ready business, regular overseas supplies from Africa, carry over stock with traders, upcoming new crop arrivals at domestic market from next month as kept price under pressure, Meanwhile, stockists and farmers holding Tur stock were active to liquidate stock had added sentiments.

Tur imports has increased to 4,27,796 tonnes from 1st April to 15th November 2021 of the current financial year 2021-22, as compared to 1,71,125 tonnes from April to 30th November of the last financial year 2020-21.

As per market sources, in forward trade, new Tur dal of Solapur origin traded at Rs 9,000/100Kg for southern market against 25-26 November loading period. For December 1-10 loading period at Rs 9,200.

However, selling pressure may get halt and Tur prices to get support at lower rates as harvest of new Tur crop to be delayed due to rainfall from last 4-5 days at producing belt and also affect quality. Also, Tur dal purchased tender had passed by Tamil Nadu Civil Supplies Corporation. Demand in processed pulses expected as vegetable prices are reportedly soaring and wedding season has already begun.

Vessel M V MAK 1 from Mozambique had discharged 18245 MT till 18th Nov at Mumbai port. Vessel carrying 24,310.821 MT Mozambique Tur and 520.04 Malawi Tur.

Vessel M V POLARIS Z carrying 16,000 MT Mozambique Tur is expected to arrive at Mumbai port on 26th November, 2021, according to a shipping agency.

In the overseas markets, Tur Lemon-Linkhey varieties priced weak at $760 per ton, respectively on a CNF basis in Burma. Meanwhile, no buyers from India were active in purchasing Urad-Tur at prevailing rates. Resellers were active as new crop likely to began soon.

Rainfall was reported from couple of days in selected areas of Maharashtra, Karnataka, Andhra Pradesh and Gujarat. Arrivals of new Tur are likely to be delayed and affect the quality.

As per market sources, Tamil Nadu 60000 MTs Tur Dal purchase tender passed at Rs 9,999/100Kg.

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

Burma Urad

Prices of Burma Urad FAQ variety eased marginally at Rs 6,825/100Kg 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 SQ variety in Chennai moved higher by Rs 25 at Rs 7,425-7,450/100Kg on selected mills purchase. While, FAQ variety eased by Rs 25 at Rs 6,825.

Urad imports has increased to 3,56,178 tonnes from 1st April to 15th November 2021 of the current financial year 2021-22, as compared to 2,25,548 tonnes from April to 30th November of the last financial year 2020-21.

In the overseas markets, Urad FAQ-SQ varieties priced each at $895 per ton and $1010 per ton on a CNF basis in Burma. Meanwhile, no buyers from India were active in purchasing Urad-Tur at prevailing rates. Resellers were active as new crop likely to began soon.

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 fell by Rs 200 at Rs 5,050-5,100/100Kg for the week at Indore due to thin mill buying activity at higher rates.

Stockists and farmers holding Chana stock were active to liquidate stock at higher rates due to cash crunch.

India 2021-22 Rabi Chana acreage was up 2.93 %, as on Nov 18, at 53.68 Lakh Ha Vs 52.15 Last Year.

Also, demand in Chana dal and besan reported below expectation despite wedding season has already begun.

Similarly for international origins, Tanzania Chana, both old-new traded weak each by Rs 25-50 at Rs 4,725-4,850/100Kg, respectively.

In overseas markets, Tanzania Chana traded at $620 /MT on CNF basis for December shipment.

Chana imports has decreased to 1,31,327 tonnes from 1st April to 15th November 2021 of the current financial year 2021-22, as compared to 1,35,874 tonnes from April to 30th November of the last financial year 2020-21.

As per market talk, Nafed has stop Chana auction in Maharashtra. Procured Chana quantity approximately 1,25,000 tons.

Russia and Sudan Kabuli Chickpea priced lower each at Rs 4,700-4,850/100Kg and Rs 5,100-5,250 on thin buying activities and 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 declined Rs 200 at Rs 9,300/100Kg and Rs 9,150, respectively on slack trade at higher rates. While, dollar variety Chana priced higher by Rs 300 at Rs 8,500-9,300.

Imported Masoor (Mumbai)

Canada crimson variety Masoor along with Australia Masoor at Mumbai fell by Rs 50 each at Rs 7,250/100Kg and Rs 6,950-7,350, respectively as millers refrained to purchase due to slow offtake in processed Masoor and overseas supplies.

Tracking Mumbai market Canada crimson variety Masoor at Mundra-Hajira port also ruled lower by Rs 75 each at Rs 7,100/100kg and Rs 7,150, respectively.

Also Nafed is actively liquidating its stocks of Masoor at Madhya Pradesh.

Masoor imports has lowered to 4,59,839 tonnes from 1st April to 15th November 2021 of the current financial year 2021-22, as compared to 8,33,315 tonnes from April to 30th November of the last financial year 2020-21.

Nafed invites offers for supply of imported Masoor from private importers.

International Masoor markets witnessed mixed during the past week, but maintained a generally weaker tone.

Red Masoor markets are closely watching seeding progress in India, as that will affect the country's attitudes toward duty rates on Masoor and the country's gross requirements.

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.

Moong (Jaipur)

New Moong prices dropped by Rs 400 at Rs 6,000-7,000/100Kg at Jaipur market of Rajasthan, as per quality, due to thin millers buying activity as offtake in processed Moong was reported dull.

Rajasthan origin new Moong traded lower by Rs 500-600 at Rs 4,500-6,550/100Kg, as per quality, at Naya bazaar pulses market of Delhi.

Rajfed has started procurement of moong at support price from November 1. But, no farmer in Bikaner is interested in giving moong to Rajfed. The reason is the difference between the price of moong in the support price and the market price.

Rajfed had set a target of buying 12.60 lakh quintals of moong at support price from 504 farmers in Bikaner.

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 slipped by Rs 50-100 each at Rs 5,700/100Kg (40% dal quality) and Rs 6,000 (60% filter quality) at Kanpur market on thin 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 pea markets were little changed during the past week, but Canada's export performance has been compromised by the effective closure of the Port of Vancouver.

All rail service coming to and from the Port of Vancouver is halted because of flooding in the B.C. interior. Both CN and CP Rail indicate that no rail traffic is currently able to transit between Kamloops and Vancouver.

Imports of field peas for China sank relative to the previous month. Imports during the month reached 137,784 metric tons (MT), down from 174,887 MT the previous month. This lifted imports so far during the calendar year to 1,483,486, up 35% last year.

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)