Week Ahead: Tur to trade firm on seasonal demand, weak currency

MUMBAI, 8 Oct (Commoditiescontrol) - Burma origin Tur along with select variety of Africa Tur moved higher during the week ended Oct 8th, 2022, amid fresh mills buying at lower rates. Further, favourable currency cues through out the week continued to support prices higher. Rupee depreciated to 82.81 against USD. That make imports costlier. Rally in US dollar was driven by the recent data releases that have strengthened Federal Reserve hawkish stance. Back home, India's decision to import Tur from several overseas source is currently aiding bullish sentiments. In this regards, NCCF has invited bids from importers for procurement 10,000 MT imported Tur (Burma, Mozambique, Tanzania & Malawi). Tenders are invited on seven days i.e. 10th, 12th, 14th, 19th, 21st, 26th & 28th October, 2022. India's buying spree held sellers on the sideline, which cause a tight availability in markets and hence up-move in prices. Burma origin Lemon variety Tur gained by Rs 50/100Kg as sellers were inactive, low ready stock & less supplies from its origin. Optimism continue drive prices of other varieties as well. Select variety of Africa Tur both old-new moved higher Rs 50-100/100Kg amid mills purchase due to cheaper rates compare to Lemon and domestic varieties despite regular supplies from its origin.








Meanwhile, arrival pressure is slowly building. Vessel M V ISLANDER from Africa discharged 15,357 MT till 8th Oct at Mumbai port. Vessel is carrying 23,873 MT Mozambique Tur.
Around 230 containers (5,520 MT) arrived at Chennai port from Sep 22-28, 2022. Each container is of 24 MT.
On the other hand, domestic variety Tur at Akola market bilty basis price remained unchanged amid millers facing disparity as action in Tur dal witnessed thin despite ongoing festive season and higher vegetable prices.
Cloudy weather conditions are cause of concern for farmers and suppliers, as rains can potentially damage the quality and yields both. Rainfall was reported from last couple of days in select procucing centers of Maharashtra, Karnataka, Madhya Pradesh and Gujarat.
As per Maharashtra based trader, recent rain and cloudy weather conditions are likely to further affect & damage new Tur standing crop. Rains are not required now. Crops need sunny clear weather atleast for 10-15 days.
As per Gulbarga based trader, the region witnessed rainfall. Weather stayed clear during the last fortnight and was beneficial for Tur crop. Once the rains stop, exact damage caused to standing crop of Tur will be known.
Yadgir region is witnessing rains since last night. New Tur Will start by last week of Dec. Tur crop expected down 25-30% compared to last year.



At Yangon market, prices of Tur Lemon variety declined for second straight week by $20 to $905 per ton on a CNF Chennai basis. At prevailing CNF rates and exchange rate landed cost of Tur at Indian ports was at Rs 7,675/100kg. Meanwhile, Burmese currency deprictated to 2800 Kyat/dollar against 2600 kyat/dollar in the previous week.

As per local source, Tur stock at Burma are estimated at around 1 lakh tonne. New Tur crop expected to begin from December onwards.

On the other hand, CNF quotes for African origins were firm by $10-15/PMT. While, CNF offers for Sudan Tur was down for second straight week by $10/PMT.

As per technical chart - Akola desi Tur - More near term upside remains firmly in place / we see next potential resistance at Rs 8,300. Click here

Trend: Tur prices may get support amid Rupee's depreciation, weather concern due to excess rainfall & cloudy weather and also expectation of Turdal demand reviving in coming days. Meanwhile, trade activity and volume was thin due to liquidity crunch. Millers were facing difficulty in getting good quality Tur for crushing at lower rates and hence they were less interested to sell their processed goods at lower rates. Moreover, hopes that Tamil Nadu civil supply award purchase tender on 10th Oct. is likely to boost sentiments. Africa origin Tur may get more support compare to Lemon & domestic varieties Tur due to cheaper rates and ready availability. Over all stockiest are expected to exit from Tur at any rise as supplies pressure from Africa may continue.

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