Week Ahead: Major pulses may gain support on low level purchase, crop loss reports

MUMBAI, 6 December (Commoditiescontrol) Indian pulses market is likely to see improved buying at lower level this week as prices of major pulses likel tur and urad remained subdued in past week. Besides, consumption demand may increase as wedding season is in progress and recent rains have affected crops in South India and elsewhere where resowing of chana is also reported. Recent rains have also affected vegetable crops and their prices are likely to remain firm, extending support to pulses, a trade analyst said.

Heavy rains lashed coastal Odisha submerging acres of harvest-ready cropland as cyclonic storm Jawad weakened into depression on Sunday. The coastal areas of West Bengal including Kolkata witnessed incessant rainfall.

Masoor, Chana along with Kabuli Chickpea prices moved higher past week ended 4th Dec 2021 amid fresh mills buying at lower rates despite overseas supplies. On other hand, Tur, Urad and White Pea remained weak on thin activity as action in processed pulses remained below expectation. While, Moong prices ruled almost unchanged due to thin activity.

Past Week’s highlights

# India Rabi Pulse Sowing up by 0.44 % as on Dec 3 to 113.98 lakh Ha vs 113.48 last year at the same period.
# India's Total Acreage of Rabi Crops up 6.15% y/y at 438.51 lakh hectare so far.
# Statewise Rabi Pulses Sowing Till Dec 1, 2021.
# Heavy rains & floods Hit crops in 50.40 lakh hectare so far this year: Govt.
# Production of Australia Chickpea is forecast to increase by 37% to 10.04 lakh tonnes during the year 2021-22, according to Abares crop report December 2021.
# Production of Australia Masoor is to increase by 3.47% to 6.56 lakh tonnes during the year 2021-22, according to Abares crop report December 2021.
# New Varieties Of Pigeon Peas To Boost Production at Kenya.
# Pigeon peas farmers of Malawi complain over lack of structured markets.
# Parliament passes bill to repeal 3 contentious farm laws.
# India's GDP grows at 8.4% in Sept quarter.

Burma Lemon Tur

In imported variety, Tur Lemon variety of Burma-origin (new) fell by Rs 100 at Rs 5,900/100Kg in Mumbai due to thin participation from millers, arrivals of new Tur at selected markets and overseas supplies..

Action in processed pulses still witnessed below expectation due to cash crunch despite vegetable prices are reportedly soaring and ongoing wedding season.

On other hand, Tanzania origin Arusha and Matwara varieties Tur remained steady at Rs 5,100-5,200/100Kg and Rs 5,050-5,100, respectively. Mozambique origin gajri variety also offered unchanged at Rs 5,000-5,100. Malawi Tur also stayed steady at Rs 4,650-4,750. Sudan Tur also remained flat at Rs 6,050-6,100.

In domestic market, Tur eased marginally during the week to close at Rs 6,275-6,300/100Kg in bilty trade at benchmark market Akola.

Vessel M V POLARIS Z from Mozambique had discharged 2678 MT till 3rd Dec at Mumbai port. Vessel carrying 17,700 MT Mozambique Tur.

Vessel M V BLUE ALEXANDRA carrying 28,135 MT Mozambique Tur in bulk and bags is expected to arrive at Mumbai port on 6th December, 2021, according to a shipping agency.

Tur prices likely to get support as sellers inactive and also harvest of new Tur crop to be delayed due to rainfall and cloudy weather at producing belt and forecast of rain will also affect quality.

The crop loss likely to be as 20-40% in Andhra Pradesh-Karnataka this year. Tur crop has been damaged by 10-15% in Maharashtra. Total output likely to be lower by 20%.

Also, Tur dal purchased tender by government agencies likely to support prices.

In the overseas markets, Tur Lemon-Linkhey varieties priced at $750 per ton, respectively on a CNF basis in Burma. Meanwhile, no buyers from India were active in purchasing Tur at prevailing rates.

New Tur crop is expected to begin in the market of Burma in coming days. 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.

Burma Urad

Prices of Burma Urad FAQ variety ruled steady to weak at Rs 6,950/100Kg in Mumbai amid thin mills buying support.

Similarly, Burma Urad FAQ-SQ varieties in Chennai also declined each by Rs 100-200 at Rs 6,875/100Kg and Rs 7,525, respectively due to ongoing delivery of regular supplies from overseas.

Buying at higher rates was limited due to liquidity crunch and slow offtake in processed Urad.

However, crop loss concern and forecast of rain likely to support prices at lower rates.

In the overseas markets, Urad FAQ-SQ varieties priced lower each at $895 per ton and $1000 per ton on a CNF basis in Burma. Resslers were active in the market.

In Burma , new Urad crop may begin arriving from month end-January 1st week till march-April. New crop is around 4 lakh tonnes. Carryover stock approximately 1 lakh ton.

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.

Chana Kantewala Indore

Chana prices firmed by Rs 25 at Rs 5,050-5,100/100Kg for the week at Indore due to fresh mill buying activity at lower rates.

Similarly for international origins, Tanzania Chana, both old-new traded higher each by Rs 75 at Rs 4,750-4,850/100Kg, respectively.

Also, Russia and Sudan Kabuli Chickpea priced higher each by Rs 100 at Rs 4,850/100Kg and Rs 5,150-5,300 on good mills purchase despite supplies of new crop from Sudan. However, import of Russian origin was not viable due to high import duty of 40%.

However, demand in Chana dal and besan reported below expectation despite ongoing wedding season.

India 2021-22 Rabi Chana acreage was up 1.77 %, as on Dec 3, at 81.43 Lakh Ha Vs 80.01 Last Year.

Resowing of Chana was reported at southern states due to recent rain as per sources.

Nafed sold procured Chana Rabi-2020 at Rs 4,901-4,926/100Kg in Rajasthan on 3rd Dec, 2021. At Andhra Pradesh, Rabi-2020 sold at Rs 4,601. In Telangana, Rabi-2020 sold at Rs 4,600.

However, Nafed procured old Chana quality was average.

Nafed is actively liquidating its stocks of Chana at various centres at lower rates and Chana sowing progress will keep prices under pressure.

Stockists and farmers holding Chana stock were active to liquidate procured stock at prevailing rates as quality was affected and also due to cash crunch.

Indore Kabuli Chana 42-44 & 44-46 count priced unchanged at Rs 9,050/100Kg and Rs 8,900, respectively on limited trade.

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 support at lower rates on immediate requirement for crushing despite overseas supplies.

Tracking Mumbai market Canada crimson variety Masoor at Mundra-Hajira port also ruled higher by Rs 125 each at Rs 7,175-7,200/100kg and Rs 7,225-7,250, respectively.

Meanwhile, Nafed is active in buying imported Masoor from private importers. But, cautious trade was reported on fear of government agency may sell procured imported stock at lower rates in future.

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

Nafed sold procured Masoor Rabi-2020 at Rs 6,455-6,462/100Kg in Madhya Pradesh on 3rd Dec, 2021.

The CGC reports 114,100 MT Masoor were loaded for export through licensed facilities in September. 207,600 MT were shipped the same month last year, while movement is down from the 202,300 MT shipped the previous month.Bulk loadings for the marketing year to 318,500 MT, compared to 413,800 MT last season.

Moong (Jaipur)

New Moong prices traded unchanged at Rs 6,000-6,900/100Kg at Jaipur market of Rajasthan, as per quality, due to thin millers buying activity as offtake in processed Moong was reported slack.

Similarly, Rajasthan origin new Moong ruled flat at Rs 4,500-6,700/100Kg, as per quality, at Naya bazaar pulses market of Delhi.

White Pea (Kanpur)

White Pea prices slipped by Rs 50-100 each at Rs 5,750/100Kg (40% dal quality) and Rs 6,050 (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.

Production of the major pulse and specialty crops sank 46% from last year to 4.558 million MT, its lowest level since 2007. Despite favorable spring seeding conditions across most of Canada, extremely hot and dry weather impacted crop development during the growing season in Western Canada. Several major field crops grown predominantly in Western Canada experienced their largest year-over-year yield decrease on record, falling to levels not seen in more than a decade.

(By Commodities control Bureau; +91 9820130172)