MUMBAI, 1 Oct (Commoditiescontrol): Prices of imported Masoor, such as Canada-Australia origin Masoor have maintained firm tone during the week ended to Oct 1st, 2022, amid fairly active mill buying at prevailing rates.
The commodity also garnered support from currency movement. Rupee has depreciated to 81.50 against USD which make the commodity's imports costlier. Already, importers were facing losses as they hold old crop of higher cost. Lower imports should provide some relief for locally produced Masoor. But, imports expected to increase as Masoor production is likely to be much bigger this year as against last year's at international markets.
On the other hand, prices of the domestic variety Masoor remained weak #amid thin particpation from mills as offtake in processed Masoor was slow.
.jpg)
Some relief is provided by the stabilisation of CNF price quoted in the overseas market, which was falling consistently earlier, and, on the basis of prevailing CNF rates, existing spot prices are below landed cost of imported Masoor.
International markets
Last week international Masoor/lentil markets stabilised after a steep fall for several weeks. Most of the Canadian Masoor is harvested and the crop is said to be the largest since 2016. But large crop prices has been discounted in prices for time being. Red lentil has 75% share in Candian total lentil or masoor crop.
As per market sources, AAFC in its September update will raise Candas Masoor production to 29 lakh tones and exports might be raised by 3-4 lakh tones. Final production numbers will be issued by Statistics Canada in December.
In September USDA increased the forecasts for the lentil area, however, the average yield is seen as disappointing. Thus, production is going to be lower than initial forecasts and export potential - even lower than in 2021/22 as opening stocks in the new season are lower.
As per Technical Chart - Kolkata Canada Masoor - Correction underway / next support at Rs 5,750. Click here
As per Technical Chart - Mumbai Canada Masoor - Correction underway / next support at Rs 5,850. Click here
Trend: Masoor prices are likely to garner support in the nearterm due to stabilization in CNF quotes and the expectation of some improvement in demand during the upcoming Deepawali festival. Further, a weak rupee would extend hand of support. However, in the long run, prices will follow trends in International markets which is largely dependent on demand from India. If Indian demand fails to absorb additional international supply we may see a further fall in international quotes and weaker international quotes will lead to lower domestic prices.
(By Commoditiescontrol Bureau; +91-22-40015513)
0 Comments 
Post Comment 
