Week Ahead: White Pea may witness narrow range movement

MUMBAI, 1 Oct (Commoditiescontrol): White Pea prices extend fall for second straight week, as per quality at Kanpur market during the week ended to 1st October 2022, as the commodity failed generate expected buying support. Thin buying activity from Mumbai and southern market persisted through-out the week. Moreover, demand had slowed down as Government extended free ration under PMGKAY scheme for 3 months.

White Pea prices at the Kanpur market traded weak by Rs 150 at Rs 4,875-5,225/100Kg, as per quality.

On the other hand, Vatana besan and dal traded unchanged each at Rs 3,850/50Kg and Rs 5,950, respectively.

International markets

Yellow peas in the international market continued to move down during the week. The candian market was quoted down by $5/Mt at $375/Mt Oct-Nov shipment CPT Vancouver (bulk) whereas Austrail yellow peas were down by $7/Mt at $300/Mt for October shipment CPT Australia (bulk). Ukraine origin yellow pea was quoted 145-210$/Mt Oct shipment CPT Odesa port. Whereas it was quoted $475/Mt Oct-Nov shipment CFR Karachi for Black sea origin yellow peas.

Canadian pea exports are forecast at 2.7 million tonnes by the Candian government agency, which would be up by 41 per cent on the year, but still off the previous five-year average of 3.52 million tonnes. Pea production in 2022-23 at 3.59 million tonnes was up by 1.3 million tonnes on the year, but below the previous five-year average of 4.27 million tonnes.

International markets are likely to move down due to bumper crop in Canada and Australia. On the other hand, demand has failed to pick up due to the absence of major buyer India due to import restrictions. Demand from China has also slowed down particularly for animal feed due to a decrease in livestock numbers and a shift in demand to Soymeal due to cheaper prices.

Trend: Domestic white Pea prices are likely to get support at lower rates as buying may emerge to meet immediate requirements due to festival season. Moreover, it is observed that the consumption is higher than the domestic crop supply. Meanwhile, demand had slowed down following the Governmentt decision to extend free ration under PMGKAY scheme by additional 3 months. Rabi Sowing expected to begin in the first week of October at Uttar Pradesh. However, there is limited downside in domestic markets from current levels as arrivals are less and lack of supplies from overseas due to import restrictions.

(By Commoditiescontrol Bureau; +91-22-40015513)