Week Ahead: Pulses prices likely to remain firm on mills demand, weather concern

MUMBAI, 10 January (Commoditiescontrol) Indian pulses market is likely to see firm tone this week as millers, traders and wholesalers are seen active at lower level in anticipation of upside movements with improved selling at retail counters, a trade analsyt said.

The cold wave and rains in north India after snow-fall Himalyan region has raised the concerns of crops and area under rabi pulses has also declined compared to last year.

Major pulses, such as Tur, Urad, Chana, Kabuli Chickpea, Masoor, Moong and White Pea moved higher during last week ended 08th Jan 2022 amid good buying from processors as offtake in dal witnessed at lower rates from retail counters, crop loss concern due to rainfall and hail.

Past Week’s highlights

# India Rabi Pulse Sowing down by 1% as on Jan 7 to 156.23 lakh Ha vs 157.75 last year at the same period.
# India's Total Acreage of Rabi Crops up 0.92% y/y at 652.16 lakh hectare so far.
# Statewise Rabi Pulses Sowing Till Jan 5, 2022.

Burma Lemon Tur

Tur Lemon variety of Burma-origin gained by Rs 350 at Rs 6,100/100Kg in Mumbai due to mills participation as offtake in new Tur dal was reported good, following firm trend at domestic markets despite increased arrivals of new Tur at producing centers.

Moreover, rainfall-hail and forecast of rain at producing centers during harvesting period has damage-delay & shrink new Tur crop.

Active stockiest across major centers continued to uplift Tur prices. While, sellers reluctant to sell at current rates.

However, market participants were cautious and uncertain for long term stocking purpose as government given extension of restriction-free imports till June 2022.

Similarly imported variety of other origins, Tanzania origin Arusha and Matwara varieties Tur ruled higher each at Rs 5,300-5,350/100Kg and Rs 5,200-5,250, respectively. Malawi Tur also gained at Rs 4,800-4,900. Sudan Tur also rise at Rs 6,200-6,300. Mozambique origin gajri variety also moved higher at Rs 5,250-5,350.

In domestic market, new Tur gained by Rs 400 during the week to close at Rs 6,625-6,650/100Kg in bilty trade at benchmark market Akola.

Tur prices movement will depend as per arrivals pressure in producing centers and also government procurement. Nafed goal to procure 8 lakh tonnes of tur at MSP across country. Crop loss concern around 20-30 percent due to rain likely to support prices.

In the overseas markets, Tur Lemon-Linkhey varieties priced higher each at $800 per ton, respectively on a CNF basis in Burma due to buying inquiries from India.

India buyers has purchased some quantity of Tur Lemon new crop 2022 cargo in the range at $660-$675 per metric ton on FOB basis and Linkhey variety 2021 crop at $650 against January end shipment for Chennai.

OATA Myanmar Tur outlook for India and Myanmar.

The production of Tur is estimated to increase to 2.50 lakh tonnes in the current season. Whereas the total availability will be 2.60 lakh tonnes including 10,000 tonnes of outstanding stock. Last year, the production of tur in Myanmar was only 1.10 lakh tonnes, although last year there was a balance of 70,000 tonnes at the time of arrival of the new crop. During the April to December of the current financial year 2021-22, about five lakh tonnes of Tur has been imported against 4.42 lakh tonne in 2020-21. Whereas by the end of March, about 1.50 lakh tonnes of Tur is expected to come.

Burma Urad

Prices of Burma Urad FAQ variety traded higher by Rs 100 at Rs 6,600/100Kg in Mumbai amid selected mills buying, regular supplies from overseas and extension of restriction-free imports till June 2022.

However, buying was limited due to liquidity crunch and slow offtake in processed Urad despite upcoming festive.

On other hand, Burma Urad FAQ-SQ varieties in Chennai ruled unchanged each at Rs 6,300/100Kg and Rs 6,800, respectively.

In the overseas markets, Urad FAQ-SQ varieties priced firm each by $5 at $805 and $890 per ton on a CNF basis in Burma due to buying inquiries from India.

India buyers has purchased some quantity of Urad FAQ variety crop 2022 at $688 per metric ton on FOB basis against January end shipment for Chennai.

According to the webinar organized by OATA Myanmar, the production of urad in the current season is estimated to be 6.75 lakh tonnes. Last year's outstanding stock is also left over 55 thousand tonnes. The total availability will sit at 7.30 lakh tonnes, last year in 2021 the production of urad was 6.25 lakh tonnes.

Chana Kantewala Indore

Chana prices extended gains for second straight week in a row by Rs 75 at Rs 5,000-5,125/100Kg for the week at Indore as millers interested in purchasing good quality Chana on immediate requirement for crushing and also due to rainfall-hail and forecast of rain in major Chana producing belt.

Availability of good quality Chana was less in market. Moreover, Nafed liquidate procured old Chana was also average quality.

However, actual demand in Chana dal and besan reported thin. Upcoming Pongal festive demand expected from southern markets.

India 2021-22 Rabi Chana acreage was up 2.12 %, as on Jan 5, at 109.44 Lakh Ha Vs 107.17 Last Year.

Similarly for international origins, Tanzania Chana, both old-new moved higher each by Rs 100-150 at Rs 4,600-4,650/100Kg, respectively.

Also, Russia and Sudan Kabuli Chickpea priced higher each by Rs 50-150 at Rs 4,650-4,700/100Kg and Rs 5,100-5,300 on mills purchase despite supplies from Sudan. However, import of Russian origin was not viable due to high import duty of 40%.

Similarly, Indore Kabuli Chana 42-44 & 44-46 count rise each by Rs 50 at Rs 9,050/100Kg and Rs 8,950, respectively. Dollar variety Chana also traded higher by Rs 200 in the range as per quality at Rs 8,000-8,700.

Nafed-FCI is actively liquidating its stocks of Chana at various centres at lower rates and Chana sowing progress at selected state will keep prices under pressure.

Stockists and farmers holding Chana stock were active to liquidate procured stock at prevailing rates as quality was affected and also due to cash crunch.

Lockdown fear due to spread of Omicron will limit the gains.

Imported Masoor (Mumbai)

Canada crimson variety Masoor along with Australia Masoor at Mumbai were firmed each at Rs 7,200/100Kg and Rs 6,951-7,300, amid mills purchase as offtake in processed Masoor is good despite Nafed active for sale of imported and domestic Masoor at various centers

Tracking Mumbai market Canada crimson variety Masoor at Mundra-Hajira port also ruled higher by Rs 125 each at Rs 7,075/100kg and Rs 7,125, respectively.

Meanwhile, stock of imported Masoor were higher compare to domestic Masoor stock. Prices of imported Masoor were higher at international market and disparity in import. Importers were less interested to sell stock at lower rates.

Moreover, Nafed invites offers for supply of 25,000 MT imported Masoor from private importers. Purchase quantity 2,500 MT at each location, such as Satna, Katni, Indore, Chennai, Tuticorin, Mumbai, Mundra, Vishakhapatnam, Kakinada and Haldia.

Govt approves extension of lentil import from Russia till 30 June 2022.

Export shipments of Masoor from Canada sank compared to the previous month in November. Total exports throughout the month amounted to 80,132 MT, down 60% from the previous month's total of 201,280. So far movement has totalled 653,165 MT, down from 1,034,479 in the same period the last marketing year.The most recent movement statistics revealed India was biggest destination, buying 11,251 MT.

Moong (Jaipur)

New Moong prices moved higher by Rs 100-200 at Rs 6,100-6,900/100Kg at Jaipur market of Rajasthan, as per quality, due to millers buying activity at lower rates as offtake in processed Moong was reported despite regular overseas supplies.

Similarly, Rajasthan origin new Moong traded higher by Rs 300 at Rs 4,500-6,800/100Kg, as per quality, at Naya bazaar pulses market of Delhi.

In Mumbai, Mozambique origin Moong traded at Rs 6,400/100Kg.

White Pea (Kanpur)

White Pea prices rise by Rs 300-350 each at Rs 5,950/100Kg (40% dal quality) and Rs 6,200 (60% filter quality) at Kanpur market on good buying support from local and outstation markets and shortage.

On other hand, Vatana besan and dal remained unchanged each at Rs 4,800/50Kg and Rs 6,900, respectively.

(By Commodities control Bureau; +91 9820130172)