Weekly: Pulses Market Mixed On Government Policies

MUMBAI (Commoditiescontrol) – Tur, Masoor and White Pea prices traded firm for the week ended Saturday (May 07-12) amid slow arrivals and lower level millers' buying support as demand in processed pulses were good. While, Urad, Moong and Australia Chana remained weak on slack trade activity and adequate stock.



Week Highlights

#India Government In Notification Informed That Only Millers/Refiners Having Own Refining/Processing Capacity Can Import Urad, Mung & Tur. Urad-Mung Annual Limit At 3 Lakh Tones (or 1.5 Lakh Ton Each) & 2 Lakh Tones Of Tur.
#Centre Government Approved Enhancement Of Chana Procurement Quantity Up To 11.27 LT At MSP Rs 4400/100Kg In Madhya Pradesh.
#Subhash Deshmukh (State Cooperative and Marketing Minister) Said Action Will Be Taken Against Traders Buying Tur Below MSP Rate.
# Madhya Pradesh Government Aims 2018-19 Kharif Pulses Production Target At 30.15 LT Vs 27.27 Last Year.
# Govt Asks Importers To Furnish Matar Import Details By May 18.

Burma Lemon Tur:
Tur Lemon variety of Burma origin gained for second straight week by Rs 75-100 at Rs 3,850-3,875/100kg amid improved millers' buying activity as good demand in Tur dal was witnessed and low arrivals.

Absence of sellers' activities in the wake of low stock and the latest warning by the state government that action will be taken against traders if found involved in buying domestic Tur below MSP, also supported prices. As per market talk, stock of raw tur is ample but ready stock of processed tur is limited.

Similarly, domestic new tur in bilty trade at Akola also moved up by Rs 100-150 at Rs 4,350-4,375/100Kg.

However, tur prices will get support at lower prices due to costly vegetables and higher prices of mango due to weather concerns. Further, prices of tur may remain volatile in line with upcoming monsoon forecast and governments policies.

NAFED Procures (Kharif 2017-18) 828273.72 MT Tur As On 9 May At MSP Prices Of Rs 5450. Gujarat:61508.15, Maharashtra:300365.70, Karnataka:335499.88, Andhra Pradesh:55600, Telangana:75300.

According to market sources, demand is likely to be subdued at higher rates as sentiments will be pressurised due to fresh supply of Tur from Mozambique at cheaper rates and government's green signal for importing 2 Lakh tonnes of tur in FY 2018-19.

Latur origin new Phatka variety traded up this week by Rs 200/100Kg at Rs 5,800-6,000/100kg in limited trade. Jalna origin new phatka variety also rise at Rs 6,000-6,200/100Kg. Gujarat origin Wasat Phatka variety new priced higher at Rs 6,100-6,400/100Kg.

In Kanpur, Maharashtra origin (Hinghanghat/Nagpur), tur dal new Phatka Sortex quality offered at Rs 5,850, new semi-Sortex at Rs 5,750, new regular variety at Rs 5,650 respectively. Trade activities were reported slack from wholesalers and retailers at higher rates.

Burma Urad:
In Mumbai, Burma urad FAQ variety declined by Rs 50 at Rs 3,475/100Kg as government allowed millers to import urad.

There is already ample crop in the country and prices are much lower than MSP and any more supply from overseas will surely going to weigh on prices further, said traders.

Moreover, demand for processed urad from consumption centres remained slack at prevailing rates. Bikaner origin branded Urad dal offered at Rs 4,500-4,700/100Kg. Tiranga brand of Mumbai at Rs 5,400/100Kg.Parivar brand of Jalgaon at Rs 5,200/100Kg.

On other hand, at Chennai, Urad FAQ and SQ variety ruled unchanged at Rs 4,140/100Kg and Rs 4,750, respectively. The outlook for urad is still bearish as domestic crop is ample and recently India allowed millers to import urad from overseas which will led to supply glut at cheaper prices and pressure on domestic prices ahead.

Chana Kantewala (Indore):
At Indore market, Chana prices traded higher by Rs 150-200 at Rs 3,650/100Kg amid local trade activity from dal mills and slo domestic arrivals.

NAFED Procures (Rabi 2018) 918425.956 MT Chana As On 10 May At MSP Prices Of Rs 4400. Maharashtra:57423.530, Rajasthan:182554.218, Madhya Pradesh:473030.528, Andhra Pradesh:77662.450, Gujarat:7754.746, Uttar Pradesh:165.810, Karnataka:127301.264(Target completed on 22.04.2018), Telangana:50000.050(Target completed on 10.04.2018).

On the other hand, Australia origin Chana at Mumbai and Mundra ports remained marginally weak each at Rs 3,450/100Kg and Rs 3,500 on slack buying.

At National Commodity and Derivatives Exchange (NCDEX), Chana May month contract settled a tad down or Rs.2 at Rs.3,550/100Kgs. Earlier in the day, the contract slid to Rs.3,523 and touched a high of Rs.3,560.

Chana stocks at NCDEX accredited warehouses stood at 30,134 metric tonnes as on 10th May, up from 29,755 metric tonnes in the previous session, the exchange data showed. Akola:25257, Bikaner 3428, Jaipur 1449.

Technically, for NCDEX Chana May Contract, the trend is down and sideways for last few days. Traders by chance short and holding the same can maintain the stop loss at 3628. Resistance is at 3593-3611. Lower range can be 3593-3562.

Australian chana dal traded unchanged at Rs 4,200/100 Kg amid slack trade activity. Domestic chana dal of Pistol brand also remained unchanged at Rs 4,300, Samrat brand at Rs 4,850 and Angel brand at Rs 4,600. Chana besan also priced steady at Rs 2,730/50Kg. Vatana besan traded unchanged at Rs 2,110/50 Kg and Vatana dal at Rs 3,750.

Kabuli Chana of 42-44 and 44-46 counts gained by Rs.50 each to Rs 5,800/100Kgs and Rs 5,600 respectively at Indore amid fresh demand at lower rates from stockists and exporters coupled with reducing arrivals.

The outlook for Kabuli chana is not encouraging due to higher domestic production followed by slow export demand, said traders.According to traders, Tanzania Kabuli chana is said to priced CNF at $510 per tonne (Rs 34,272 per tonne), much lower than local crop. Further Russian Kabuli chana 6-7mm cold storage stock offered at Rs 3,250-3,300.

Similarly, Kabuli Chana dollar variety traded firm by Rs 100 at Rs.4,500-5,300/100Kgs at Indore on fresh trade and regular arrivals.

Farmers are mostly selling their chana to Nafed as it is buying at MSP of Rs 4,400/100kg while prevailing rates in the spot market are much lower than MSP. Farmers avoid to sell their produce to private traders as they are procuring at very low rates. Although prices in the recent times were mostl bearish, but downside is limited from hereon.

The festival season in the country will start from August and will last till Diwali, which will support chana prices. Further the other major factor that will support chana is poor supply of matar. India government has put matar in restricted category with April-June import limit at only 1 lakh tonne.

Since the available matar stocks is exhuasting, buyers may shift to chana, which is a close substitute for matar. Further chana dal from India is said to exported at $670-680 per tonne FOB Nhava Sheva Port is also positive for chana.

Imported Masoor (Mumbai):
Canada origin crimson variety masoor both in Container and Vessel moved up by Rs 50-75/100Kg in Mumbai amid millers' buying at lower rates, following firm trend in Tur, no supply from overseas and slower than expected arrivals of new domestic crop due to farmers' preference to sell their crop to government rather then selling to private traders at lower prices than MSP.

Canada crimson variety masoor in container gained by Rs 50 at Rs 3,700-3,800/100Kg. Old Canada masoor of vessel also traded firm by Rs 75 at Rs 3,550-3,650.

Similarly, Australia Masoor quoted higher by Rs 50 at Rs 3,900-4,000/100Kg for limited stock.

NAFED Procures (Rabi 2018) 52037.34 MT Masoor As On 9 May At MSP Prices Of Rs 4250. Madhya Pradesh:51947.99, Uttar Pradesh:89.35.

Demand in processed Masoor was also reported slack from consumption centres at existing rates. Canada Masoor dal of Bhiwandi mills offered at Rs 4,300/100Kgs, for APMC Vashi market delivery.

In forward business, Canada crimson variety masoor offered at $425 per ton in container on CNF basis Nhava- Sheva For May-June shipment. Australia nugget variety masoor offered at $450 per ton in container on CNF basis Nhava- Sheva For May-June shipment.

Imported White Pea (Mumbai):
Canada, Ukraine and Russia origin White Pea at Mumbai traded higher by Rs 25-50 at Rs 3,321-3,351/100Kgs, 3,251 and Rs 3,201, respectively amid better buying activity after India put imports of matar (peas) under the restricted category and fixed a cap for its in-bound shipments up to one lakh tonnes for a period of three months.

Moreover, business activities in Matar dal and besan were reported good at current rates from consumption centres.

Consumption demand in recent years has shifted to White pea dal/besan from chana dal/besan due to cheaper rates.





Moong (Jaipur):
Moong prices quoted lower at Rs 4,900-4,950/100Kg in Jaipur market during the week on subdued millers' buying at prevailing rates.

Similarly, Moong dal prices also ruled weak by Rs 100 at Rs 6,000-6,100/100Kg as per quality.

Gajar variety moong traded at Rs 4,200/100Kg in Cuttack. Crop size of moong is 50% less as compared to last year on weather concerns and is expected to be approximately 2 lakh bags (50Kg each). Moong mogar traded in the range of Rs 6,200-6,400/100Kg for Kolkata delivery.

While, Moghlai-Gajar variety moong quoted at Rs 4,200 at sunderbans. Here crop size is expected around 30,000-40,000 bags (Each bag 50Kg).

According to market sources, prices of moong are likely to trade range bound due to adequate stock position and fresh supplies of summer crop in Madhya Pradesh, Uttar Pradesh and Gujarat.

Meanwhile, government agencies are also active to sale their procured stock in Rajasthan, Madhya Pradesh, Andhra Pradesh, Karnataka and Maharashtra. Additionally, supply from Tanzania is also likely in near future. Tanzania origin new moong traded at $550 CNF basis for May-June shipment.

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