Week Ahead: Tur to get support on mill buying despite supply & arrivals

February 4, MUMBAI (Commoditiescontrol) – Africa origin Tur prices increased for the week of February 4, 2023, on mills' purchases since it was trading at a steep discount to Burma origin and domestic origin types, and supply from Africa has nearly depleted.

Burma origin Tur traded higher by Rs 50/100Kg on need-based mills buying amid cheaper rates and better quality than domestic variety, following firm cues of Burma CNF quotes despite consistent supply from Burma. Also, millers prefer to purchase Burma Tur compared to domestic Tur as the new domestic Tur contains green variety, which affects the quality of the Tur dal phatka variety.

Domestic origin new Tur traded firm by Rs 25/100 at Akola in bilty trade due to local and outstation millers and traders need-based buying. At the same time, commodity fell by Rs 100/100Kg at Gulbarga due to average quality arrivals.

Due to need-based offtake, prices of domestic Tur dal processed from the new crop Tur at Akola gained Rs 100/100Kg. In contrast, the commodity price declined by Rs 200/100Kg at Katni and Gulbarga amid thin offtake. On the other hand, Burma-Sudan and Mozambique-origin processed Tur prices rose by Rs 100/100Kg as some buying was witnessed due to its discount to other origin pulses.

As Burmese stockists were present in the market, the Tur Lemon variety's price at the Yangon market increased by $30 to $865 a tonne on a CNF Chennai basis. In addition, it was stated that importers from India are stocking up in Burma. Compared to last week's closing rate of 2875 Kyat/dollar, the value of the Burmese currency Kyat fell to 2880 per dollar.

As per technical chart - Mumbai Lemon Tur - A confirmation of support at Rs 6,900 may trigger further strength towards Rs 8,000. Stay tuned - Click here.

Trend:Due to the steady supply of new Burma Tur crop and the arrival of the domestic Tur crop at producing centres, the Tur price may fluctuate between Rs 200 and 300/100 kg. Millers, meanwhile, experienced disparity since Tur Dal's offtake was below expectations. Additionally, millers-traders were less active at higher rates because they feared that the government might intervene if there was a rise in Tur dal prices. A reduced crop size will limit the downside in price, and Tur may find support at a lower level on need-based buying from millers in addition to this empty pipeline, The TNCSC tender could help Tur prices in the short term on the immediate front. Prices will also be affected by the CNF quotes from the Burmese market and the rupee's exchange rate to the US dollar.

(By Commoditiescontrol Bureau; +91-9820130172)