Mumbai, 19 Mar 2024 (Commoditiescontrol): Urad prices in Indian markets sustained their downward trajectory, mirroring losses seen in the Burmese market and CNF India trade. Chennai's reseller market experienced significant declines as importers and speculators reduced their long positions.
The Burmese market saw declines of 45,000 MMK/Mt for FAQ (Fair Average Quality) urad, while SQ (Superior Quality) urad prices held steady. Trade sources report rumors that the Burmese government will adjust the currency exchange rate from 3000 MMK/dollar to 2900 MMK/dollar, causing buyer reluctance for new purchases even as new crop arrivals reach peak levels. This situation is putting downward pressure on local Burmese prices.
Similarly, a lack of buying interest affected CNF India trade, as a revaluation of the Burmese exchange rate would lead to lower export rates in dollar terms. Chennai's CNF market felt this effect acutely, with market participants liquidating positions in anticipation of reduced CNF prices.
Chennai and Mumbai reseller markets reflected losses in CNF India trade, with prices for Burmese FAQ and SQ urad declining. Markets in Kolkata and Delhi maintained price stability.
Desi urad price also decline in domestic market tracking losses in imported urad.
As previously noted, Indian demand for urad is steady but supply remains limited. Therefore, urad prices will be primarily determined by the volume and landed cost of Burmese urad at Indian ports. Considering the increasing new crop arrivals in Burma and buyer caution due to anticipated exchange rate adjustments, Burmese prices are likely to see further decline. However, the ongoing demand from India, driven by a shortfall in domestic production, should serve as a limiting factor against drastic price decreases.
Spot Urad Prices In Key Indian Markets:
(By Commoditiescontrol Bureau; +91-9820130172)
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