Weekly: Masoor, White Pea, Moong Gain Most This Week; Urad Weakens

MUMBAI (Commoditiescontrol) – Masoor, White Pea, Kabuli Chickpea and Moong moved up during the week ended Saturday (September 10-15) on millers' buying support at lower rates. While, Urad and Tur remained weak due to dull millers' trade. On other hand, Chana traded mixed amid thin volume.

Week Highlights

# India Kharif Pulses Sowing Down 0.9 % As On Sep 14 At 137.41 Lakh Ha Vs 138.60 Last Year. Tur : 45.70 Vs 45.31, Urad : 40.20 Vs 44.09, Moong : 34.25 Vs 31.86, Other Pulses: 16.39 Vs 16.41.
# Cabinet Approves New Procurement Policy To Ensure MSP To Farmers.
# Import Of Pulses Will Become Costlier After India Rupee Slips To Record Low Of 72.90 Vs Dollar. INR Dips Nearly 14% So Far In 2018.
# Government Source Says Pulses Buffer Stock At 12-13 Lakh Tonnes & It Will Not Buy More For Buffer Stock. Tur Account Most With 10 Lakh Tonnes, Rest Other Pulses.
# Australia Pulses Output In LT (2018-19 Vs 17-18). Chana: 3.51 Vs 11.48 (-69.43%), Masoor: 3.69 Vs 4.85, Matar: 2.08 Vs 2.89. Output Down On Poor India Demand/Dry Weather.
# Maharashtra Goernment Seeks 15,000-Tn Subsidised Pulses/Month From Centre For PDS.



Burma Lemon Tur:

Tur Lemon variety of Burma origin eased by Rs 50 at Rs 3,350/100Kg at Mumbai market due to slow millers' trade as sale counters in processed tur reported limited.

On the other hand in Mumbai, Mozambique origin red and white tur quoted firm by Rs 25 each at Rs 3,100/100Kg and Rs 3,325, respectively amid millers' buying due to cheaper prices.

While, domestic tur in bilty trade at Akola traded flat at Rs 3,850-3,875/100Kg.

Nafed were active in selling procured tur (2017) crop in many states. Millers also preferred to purchase Nafed tur due to issue related to procurement prices in Maharashtra. Maharashtra cabinet last month decided to amend the APMC Act making it illegal for any private trader to purchase any agriculture produce below the government-fixed MSP from the current kharif season.

However, some traders and millers of Maharashtra were seen purchasing good quality pulses from farmers below MSP albeit mentioning them as average quality.

Latur origin Phatka variety remained steady at Rs 5,650/100Kg for Mumbai delivery on limited buying activity. Similarly, Khamgaon origin phatka variety also quoted flat at Rs 5,650/100Kg, Gujarat origin Wasat Phatka variety at Rs 6,150-6,350/100Kg and Jalna origin phatka variety at Rs 5,900/100Kg (Mumbai Delivery).

In Maharashtra, though rains were good this season but sporadic dry spells and couple of breaks in monsson have adversely affected growth and production of some kharif crops, especially tur. Production of Moong and Urad has also been affected due to less rainfall during the start of the season. If it doesn't rain in a week, then yield may be affected resulting in likely decline in production.



Burma Urad:

In Mumbai, Burma urad FAQ variety slipped by Rs 150 at Rs 3,575-3,600/100Kg due to slackened buying from mills at higher rates, further supply from overseas at Chennai port, liquidation of old procured stock by government and increased arrivals of new produce in Maharashtra, Karnataka and Telangana.

In Chennai, Urad SQ and FAQ new variety remained sharply weak at Rs 4,400/100Kg and Rs 3,450, respectively in ready delivery as per condition. Urad SQ/FAQ quoted weak in forward business at Rs 4,350/100Kg and Rs 3,350 for Whole October delivery.

Sentiments were pressurised amid reports that 1,000 containers of urad is now being loaded in Burma for Chennai port. Moreover, sellers were active in Chennai.

Moreover, demand in processed Urad remained thin from consumption centres. Bikaner origin branded Urad dal offered at Rs 5,200-5,500/100Kg for Mumbai delivery. Tiranga brand of Mumbai was at Rs 5,500/100Kg for Mumbai delivery, Parivar brand of Jalgaon at Rs 5,400/100Kg for Mumbai delivery.

As per market talk, prices are expected to remain under pressure for the short term on increase of new crop arrivals in major states. On the other hand, governement has not yet started procurement at MSP from farmers. Government may also opt for Bhavantar Bhugtan Yojna in many states and if the government does so, prices may remain weak during that period as at the same time farmers will liquidate their stock in the market.

However, urad prices are likely to get support in the long-term amid reduced sowing in major states as farmers realised lower remuneration from the crop last season, concerns over acreage/area/quality and also on limited imports from overseas, compared to last year due to restriction imposed by the government.



Chana Kantewala (Indore):

At Indore market, Chana prices traded lower by Rs 50 at Rs 4,025-4,050/100Kg due to thin trade volume as market remained closed almost for a week on account of labour strike, Ganesh Chaturthi and Rushi Panchami.

On the other hand, Australia origin Chana in ready business at Mundra port gained by Rs 50 at Rs 4,075/100kg on millers' trade activity. While, the commodity ruled flat at Rs 4,000/100Kg at Mumbai as quality was reported average.

Similarly, Burma origin chana traded higher by Rs 50 at Rs 4,000/100Kg in Mumbai on millers' buying due to cheaper prices.

Meanwhile, there are reports, that the government is likely to raise the export incentive for chana to 15% from 7%. In March, the government had announced 7% duty credit incentive on exports of Bengal gram, or desi chana, for three months.

Under this scheme, an export incentive is paid as a percentage of the realised freight-on-board value for notified goods headed for notified markets. The incentives are given in the form of duty credits.

The move was aimed at disposing of huge stocks of chana, which were accumulated after a record high output in 2016-17 (Jul-Jun), as domestic prices were higher than global prices.

However, sentiments are still under pressure as Nafed is selling procured chana between Rs 4,000-4,100/100Kg as per quality in major states. Cheaper imports of Kabuli chickpea from Sudan & Burma, and limited sale counters in processed chana and besan are also weighing on sentiments.

But demand is expected at lower rates in chana dal/besan due to shortage in white pea supply ahead of festive season.

At National Commodity and Derivatives Exchange (NCDEX), Chana October month contract settled weak by 1 per cent or Rs 44 at Rs.4,032/100Kgs.

Technically, for NCDEX Chana October Contract, accumulate at 4062-4024 as the opportunity arises with a stop loss of 4000. Expect higher range of 4114-4204 to be tested.

Chana stocks at NCDEX accredited warehouses stood at 49,153 metric tonnes (Akola: 47342, Bikaner 775, Jaipur 1036) as on 14th september, up 49,151 from the previous session, the exchange data showed.

Australian chana dal traded higher by Rs 100 at Rs 4,900/100 Kg for Mumbai delivery amid good buying activity. Similarly, domestic chana dal of Pistol brand moved up by Rs 50 at Rs 5,250 for Mumbai delivery, Samrat brand up by Rs 150 at Rs 5,700 for Mumbai delivery, Angel brand gained by Rs 200 at Rs 5,700 for Mumbai delivery. While, chana besan traded flat at Rs 2,990/50Kg, Vatana besan eased marginally at Rs 2,711/50 Kg and Vatana dal steady at Rs 4,750.

In Mumbai, Sudan origin kabuli gained by Rs 50 at Rs 4,000/100Kg on besan flour millers' buying. Similarly, Kabuli chana of Burma traded higher by Rs 100 at Rs 4,200/100Kg due to its superior quality.

Imported Masoor (Mumbai):

Canada origin masoor in both vessel and Container along with Australia masoor moved up by Rs 150-250/100Kg in Mumbai on fresh buying support from mills at lower levels amid news that the governement is likely to raise the import duty on masoor to 100% from 30% to curb imports.

Moreover, import of pulses will become costlier as so far this year, the Indian Rupee has weakened around 14 percent.

Canada crimson variety masoor in vessel and container traded higher by Rs 200-250 at Rs 3,700-3,800/100Kg and Rs 3,850-3,950, respectively. Stock of Canada masoor old in vessel was low and offered as per quality. MMTC were active in selling procured old masoor stock at Rs 3,550/100Kg, up Rs 150 in Mumbai.

Similarly, Australia Masoor nugget variety also gained by Rs 200 at Rs 4,000-4,100/100Kg as per quality against limited stock.

As per market sources, upcoming supply from Canada in the near future due to price parity and selling of masoor by Nafed are likely to limit the gains.

On the other hand, demand in processed Masoor was reported to be limited from consumption centres. Canada Masoor Khopoli spot ruled at Rs 4,750/100Kg.



Imported White Pea (Mumbai):

Canada origin white pea at Mumbai, Hajira and Mundra ports, Russia White Pea at Mundra port along with Ukraine White Pea at Mundra/Hajira ports gained by Rs 75-150/100Kg as per quality amid fresh millers' buying support at lower rates and shortage of ready stock.

Moreover, import of pulses will become costlier as so far this year, the Indian Rupee has weakened around 14 percent.

Canada White Pea traded at Rs 4,225/100Kg at Mumbai, Rs 4,000-4,100 at Mundra and Rs 4,075 at Hajira port. Russia origin Baltic variety quoted at Rs 4,000 in Mundra. Ukraine White Pea ruled at Rs 4,150 at Mumbai and at Rs 4,050 at Mundra and Hajira.

Meanwhile, millers and traders preferred to purchase chana for crushing due to shortage of white pea stock.

Demand in matar dal/besan remained slow at prevailing rates. But, prices are likely to get support in the next few weeks ahead of festival season.

Prices of White Pea will depend on government decision, whether it will extend import restriction for the next quarter till December or will allow import from overseas after September 30,2018.



Moong (Jaipur):

Moong prices traded higher by Rs 100 at Rs 4,800-5,200/100Kg as per quality at Jaipur market on millers' buying support from mills due to dry quality and festive period despite arrivals of new crop in Maharashtra, Karnataka, Telangana and Rajasthan.

Similarly, Moong dal prices also gained by Rs 100 at Rs 6,250/100Kg depending on the quality.

Meanwhile, registration process is going on in Karnataka and Telangana and government will start moong procurement soon.

Farmers in Maharashtra are demanding from the government to spell out the procurement strategy for the season and begin purchasing from the markets.

But stockists and traders are not interested to purchase moong as prices are unlikely to gain in future even if moisture levels fall, as crop is expected to remain bumper as compared to last year.

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