Urad prices fall in Burmese market, edges up in local market

Mumbai, 08 May 2024 (Commoditiescontrol): Urad prices in Myanmar extended their decline on Wednesday due to poor demand from India, the offtake is impacted during the summer season, adding downward pressure on prices. Importers noted a lackluster market, leading to a drop in prices ranging from 5,000 to 7,000 Kyat per metric ton. Also, the expectations of domestic summer cropn arrivals are building up in softer Burmese Urad prices.Some market closures were reported due to ongoing elections.

CNF and resale quotes from Myanmar witnessed a decrease of $5-10 per MT, with minimal trading activity amidst concerns over potential government intervention. This climate prompted participants to engage cautiously, favoring hand-to-mouth transactions.

At domestic markets, Urad dal remained stable after yesterday's fall of Rs 100 per quintal. There was no change in whole Urad prices as well.

According to experts, there is lack of demand for urad dal at high prices. Today 66 quintals of urad arrived in MP's Patan Mandi, the price of which was Rs 7,705 to 9,620 per quintal. In Jabalpur, 61 quintals arrived and the price was said to be Rs 6,000 to 9,600 per quintal. There were 19 quintal arrivals in Damoh whose prices ranged from Rs 5,640 to Rs 6,500 per quintal.

Jaipur market reported sharp decrease of Rs 100 per quintal while Jodhput saw a Rs 100 decrease in urad dal prices due to poor demand, while urad prices remained stable.

Experts highlighted a significant lack of demand for urad dal at higher prices, with only 2 quintals arriving in the farmers' market at Rs 6300 per quintal.

Urad prices are likely to remain subdued in the near term due to a confluence of factors: summer crop arrivals, seasonally lower demand during hot weather, and a tight money market stemming from the ongoing elections. However, the arrival of the monsoon next month is expected to bring cooler temperatures and potentially boost Urad demand. Additionally, the completion of elections should ease the liquidity crunch, further stimulating demand and trading activity. This suggests limited downside risk for Urad prices from current levels.

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