Week Ahead: Pulses prices likely to remain under supply pressure

MUMBAI, 31 January (Commoditiescontrol) Pulses prices are likely to remain under supply pressure this week as domestic arrivals and overseas supplies are constantly rising. Almost all major pulses witnessed bearish mood last week and same trend is expected to continue, as per the trade analysts.

Major pulses, such as Tur, Urad, Chana, Kabuli Chickpea, Masoor, Moong and White Pea prices declined last week ended 29th Jan 2022 amid thin mills buying activities as offtake in processed pulses reported dull, liquidity crunch, domestic arrivals and overseas supplies.

Past Week’s highlights

# India Rabi Pulse Sowing up 0.96 % as on Jan 28 to 166.43 lakh Ha vs 164.85 last year at the same period. Click here
# Area under Rabi crops reported 689.14 lakh ha, up 1% from last year. Click here
# Statewise Rabi Pulses Sowing Till Jan 26, 2022. Click here
# Govt raises target of summer crop area 29% to 52.72 lakh ha for 2021-22. Click here
# Maharashtra First Advance Estimates of major kharif crop 2021-22. Click here
# Maharashtra 1st Advance Est (2021-22): Kharif Pulses output Dn To 26.7%. Click here
# Karnataka Crop 2nd Advance Est (2021-22): Tur Crop Seen Dn To 16.8%. Click here
# Second Advance Estimates of major Kharif-Rabi & Summer crops 2021-22 - Gujarat. Click here

Burma Lemon Tur

Tur Lemon variety of Burma-origin traded lower by Rs 50-75 at Rs 6,100/100Kg in Mumbai due to thin mills buying, ongoing arrivals of new Tur at producing centers, regular overseas supplies and extension of restriction-free imports till June 2022.

Millers were facing disparity due to dull demand and sale counter in Tur dal. Buyers were interested to purchase good quality Tur.

New Tur prices were traded above MSP of Rs 6,300/100Kg at Maharashtra-Karnataka. However, farmers were less interested to sell and decided to hold on their stock due to lower Tur crop output because of winter rain during harvesting.

Stockiest were still cautious and uncertain for long term stocking purpose due to government policies.

Similarly, imported variety of other origins, Tanzania origin Arusha and Matwara varieties Tur dropped each at Rs 5,300-5,350/100Kg and Rs 5,150-5,250, respectively. Sudan Tur also quoted down at Rs 6,350. Mozambique origin gajri variety also priced lower at Rs 5,200-5,250. Malawi Tur also offered weak at Rs 4,800-4,850.

In domestic market, new Tur fell by Rs 250 during the week to close at Rs 6,550-6,600/100Kg in bilty trade at benchmark market Akola.

However, forecast of rain and recent rainfall in the major producing areas during harvesting period has damage-delay & shrink new Tur crop. As per the analysts, crop loss would be around 20-30 percent due to rain and this may support its prices.

In the overseas markets, Tur Lemon variety offered at $810 per ton on a CNF basis in Burma on slack trade from local and overseas.

Meanwhile, India buyers were active to purchase Tur at lower rates. Buyers were interested to purchase Tur at $705 per metric ton on FOB basis. But, sellers were interested to liquidate at $715-$720.

Burma Urad

Prices of Burma Urad FAQ variety continued to trade weak by Rs 100 at Rs 6,400/100Kg in Mumbai on slack mills buying due to liquidity crunch as there is slow off-take in Urad dal-gota variety, regular imports from overseas due to extension of restriction free imports till June 2022. Moreover, good crop estimates for Burma.

Similarly, Burma Urad FAQ-SQ varieties in Chennai fell by Rs 125-200 at Rs 6,125/100Kg and Rs 6,500, respectively. On other hand, FAQ variety ruled flat at Rs 6,225. Meanwhile, settlement of forward trade against January month was reported.

India 2021-22 Rabi Urad acreage was down 4.28 %, as on Jan 26, at 7.61 Lakh Ha Vs 7.95 Last Year.

Meanwhile, average quality regular arrivals of Urad witnessed at Uttar Pradesh and Madhya Pradesh.

Arrivals of new Urad are likely to begin within a fortnight at Kurnool district (Rayalaseema, Nandyal, Allagadda and Nandikotkur) and Nellore district (Kavali) of Andhra Pradesh.

Krishnur district arrivals of new Urad will begin from February end 2021.

In the overseas markets, Urad FAQ-SQ varieties priced weak at $795 and $880 per ton on a CNF basis in Burma. Meanwhile, India buyers inactive in Urad at prevailing rates.

Chana Kantewala Indore

Chana prices remained weak by Rs 50 at Rs 5,000/100Kg for the week at Indore amid thin buying from mills and new crop arrivals witnessed in producing centers.

India 2021-22 Rabi Chana acreage was up 3.85 %, as on Jan 28, at 114.27 Lakh Ha Vs 110.03 Last Year.

Meanwhile, action in Chana dal and besan was reported thin.

However, availability of good quality old Chana was less in market. Also, Nafed liquidate procured old Chana was also average quality.

New chana crop expected to be good in Gujarat-Karnataka & Maharashtra (Vidarbha).

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

Similarly, Tanzania Chana, declined by Rs 100 at Rs 4,500/100Kg at Mumbai amid thin buying, overseas supplies, new domestic arrivals witnessed in producing centers.

Russia and Sudan Kabuli Chickpea priced lower by Rs 50 each at Rs 4,600-4,700/100Kg and Rs 4,900-5,250 on mills purchase despite supplies from Sudan. However, import of Russian origin was not viable due to high import duty of 40%.

Indore Kabuli Chana 42-44 & 44-46 count dropped each by Rs 150 at Rs 8,450/100Kg and Rs 8,350, respectively. Dollar variety Chana also traded weak by Rs 100 in the range as per quality at Rs 8,000-8,400.

Imported Masoor (Mumbai)

Canada crimson variety Masoor and Australia Masoor at Mumbai slipped by Rs 50-100 each at Rs 7,100/100Kg and Rs 6,850-7,200, as millers refrained from purchasing due to less offtake in processed Masoor, Nafed active for sale of imported and domestic Masoor at various centers.

Tracking Mumbai market Canada crimson variety Masoor at Mundra-Hajira port also ruled weak by Rs 125 each at Rs 6,950/100kg and Rs 6,975, respectively.

Meanwhile, stock of imported Masoor were higher compare to domestic Masoor stock. Prices of imported Masoor were higher at international market and disparity in import.

No crop damage was reported despite recent rainfall-hail in major Masoor producing belt. However, harvesting likely to be delayed.

The Canadian Grain Commission reports 78,800 MT Masoor were loaded for export through licensed facilities which are required to report to it all grain movement in December. 20,900 MT were shipped the same month last year, while movement is up from the 4,900 MT shipped the previous month. This lifted bulk loadings for the marketing year to 402,200 MT, compared to 499,000 MT last season.

Moong (Jaipur)

New Moong prices eased by Rs 50 at Rs 6,100-6,800/100Kg at Jaipur market of Rajasthan, as per quality, due to slack millers buying activity amid thin offtake in processed Moong, ongoing domestic arrivals in Rajasthan - Madhya Pradesh and overseas supplies.

Nafed also active to liquidate procured stock in Madhya Pradesh, Tamil Nadu and Rajasthan.

Similarly, Rajasthan origin new Moong traded lower at Rs 4,500-6,650/100Kg, as per quality, at Naya bazaar pulses market of Delhi.

India 2021-22 Rabi Moong acreage was down 27.84 %, as on Jan 28, at 4.77 Lakh Ha Vs 6.61 Last Year.

The output of Moong in Maharashtra is estimated to decline 35.27% to 1,34,000 tn in the 2021-22 Vs 2,07,000 tn during 2020-2021, according to the first advance estimates.

Venezuelan origin Moong offered at $900 per ton in container on CNF basis JNPT against February end-March shipment.

At Burma, Moong Pediseva variety moved higher by $20 at $920 per ton on china buying support, new crop and superior quality. While, Pokako variety Moong ruled weak by $100 at $880 per ton due to slack trade.

India buyers were also purchasing Moong Bagoseva variety at $775 per metric ton on FOB basis from Burma.

Buyers from India has purchased Tanzania origin Moong at $780-$790 per ton in container and expected to arrive at JNPT in near future.

India government had given extension of restriction-free imports of Moong till June 2022.

White Pea (Kanpur)

White Pea prices slipped by Rs 150 each at Rs 6,150/100Kg (40% dal quality) and Rs 6,450 (60% filter quality) at Kanpur market on thin buying support at higher rates despite shortage.

However, some damaged to new domestic White Pea crop was reported in Uttar Pradesh on weather concern.

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

Global field pea markets finished the week's trading on a weaker note, reflecting the absence of China's feed industry and dramatic reduction in movement of North American peas to Bangladesh.

Though available supplies in Canada are unusually low because of last year's drought reduced harvest, there is a potential for available supplies to rise relative to prospective demand.

Easing grower bids may be having some impact, with some farmers fearful they have missed the market.

(By Commodities control Bureau; +91 9820130172)