Weekly: Weakness Continues In Pulses On Fall In Demand For Dal

MUMBAI (Commoditiescontrol) – Major pulses such as Tur, Urad, Moong, Chana, Kabuli Chickpea, White Pea and Green Pea widened losses for a second straight week ended Saturday (May 27- June 01) on dull buying support as demand and sale counters were reported limited. While, Masoor remained almost unchanged due to limited trade activity.

Week Highlights

# The Madhya Pradesh government has extended the procurement deadline for chana, masoor, and mustard in the state to June 6, 2019 which was earlier set for the May-end.
# IMD predicted normal monsoon this year, at 96% of long period average. IMD also said that monsoon is likely to set over Kerala around 6th June as predicted earlier. While pre-monsoon (March 1- May 29) rainfall deficit widened to 24%.
# The DGFT has provisionally allocated quota for pulses imports in 2019-20. Total 1782 applications were received. The DGFT rejected 488 applications. Out of the remaining 1294 applications, 1183 applications were for Tur, 1012 for Moong, 1117 for Urad and 1115 for Peas.
# The Maharashtra Agriculture department has advised farmers to delay their sowing operations of Urad/Moong as the onset of monsoon is likely to be delayed in the state.

Burma Lemon Tur:

Tur Lemon variety of Burma origin eased by Rs 25 to Rs 5,550/100Kg in Mumbai amid subdued millers trade activity as demand and sale counters in Tur dal remained thin due to month-end, vacation period and also due to the ongoing Ramzan and Mango season. Demand is expected in Tur dal after Ramzan.

Moreover, buyers were opted to wait amid uncertainty over monsoon arrival.

Similarly, domestic tur in bilty trade at Akola also traded weak by Rs 50 at Rs 6,150-6,175/100Kg.

Arrivals in few local markets were increased as small traders/millers were active to liquidate stock and profit taking.

NAFED has successfully procured 275663.4 MT of Tur at Minimum Support Price of Rs 5,675/100kg as on May 29, 2019. Telangana:70300, Karnataka:110610.75, Gujarat:32275.9, Maharashtra:53985.94, Tamil Nadu:399.9, Andhra Pradesh: 4935.95, Madhya Pradesh: 3154.96.

Latur origin new Phatka variety priced flat at Rs 8,350-8,550/100Kg for spot. Gujarat origin Wasat new phatka variety ruled at Rs 8,750-9,050/100Kg, Khamgaon origin new Phatka variety at Rs 8,250-8,450/100Kg (spot), Jalna origin new phatka variety at Rs 8,550-8,850/100Kg (spot) and Solapur origin new phatka variety at Rs 8,350-8,550/100Kg (Spot).

Buyers were active in purchasing licence from millers after DGFT had allocated quota for millers to imports Tur from overseas.

In forward business, Tur Lemon Old offered at $690, new at $790, Malawi red at $635, Malawi Gajri at $670 and Arusha$690 per ton in container on CNF basis JNPT for June/July shipment.

Overall, prices are likely to get support because of decreasing domestic arrivals in the wake of lower output and also on weak and delayed monsoon forecast and delay in imports.

Burma Urad:

Burma Urad FAQ variety remained marginally weak to Rs 4,900/100Kg at the Mumbai market because of slow buying support amid liquidity crunch despite limited stock.

Moreover, demand in processed urad from consumption centers was sluggish due to the ongoing summer season.

Similarly, In Chennai, Urad FAQ/SQ variety quoted lower each by Rs 75-100 at Rs 4,875/100Kg and Rs 6,025, respectively in ready delivery as per condition.

In forward business, Urad FAQ traded weak by Rs 50 at Rs 5,075/100Kg for whole June delivery on buyers option. Urad SQ quoted at Rs 6,250 for whole June month delivery on buyers option.

Short sellers were active in the market last week at higher rates. Prices are likely to rise soon with short sellers will start covering their short positions and purchasing for June delivery.

Nafed was also active to liquidate old/new procured stock in selective states.

Bikaner origin branded Urad dal ruled at Rs 6,300-6,500/100Kg for spot. Tiranga brand of Mumbai also traded at Rs 7,100/100Kg for Mumbai delivery, Parivar brand of Jalgaon at Rs 6,600/100Kg for spot.

NAFED has successfully procured 14251.97 MT of Urad 1n Rabi-2019 Season at Minimum Support Price of Rs 5,600 as on May 30, 2019. Tamil Nadu:3379.07, Andhra Pradesh:10436.9, Telangana:436.

However, delay in further imports and limited availability of imported stock will support the prices at lower rates with the progress of the monsoon.

Chana Kantewala (Indore):

New Chana traded more or less unchanged at Rs 4,450-4,475/100Kg in Indore amid thin millers buying support as per quality against decreasing arrivals.

Demand and sale counters in processed Chana/besan were reported dull.

On the other hand, Australia origin Chana in ready business at Mumbai and Mundra port fell by Rs 75 each at Rs 4,550/100kg, respectively amid dull trade at higher rates, average quality supply and also due to very limited availability of stock.

Burma origin chana also ruled weak by Rs 100 at Rs 4,400/100Kg.

NAFED Procured 691519.75 MT Chana In Rabi-2019 Season as on May 30,2019.Telangana:34500, Rajasthan:84008.88,Maharashtra:19142.66, Madhya Pradesh:534765.35,Andhra Pradesh:2777.85, Gujarat:16100.31, Haryana:207.6, Uttar Pradesh:17.1.

Balance Stock of procured Chana during Rabi-18 season with Nafed is 1624310.40 MT as on 27 May, 2019.

Chana for June delivery on National Commodity and Derivatives Exchange (NCDEX), settled a tad lower or Rs 4 at Rs 4,612/100kg. Earlier, in the day, the contract hovered in the range of 4,570 and 4,687 on Friday.

Chana stocks at NCDEX accredited warehouses stood at 94,717 metric tonnes (Indore: 161, Bikaner 68,844, Jaipur 25,712) as on 30th May, up 94,514 metric tonnes from the previous session, the exchange data showed.

Australian chana dal priced flat at Rs 5,450/100 Kg for spot on slow trade activity at higher rates. Domestic chana dal of Pistol brand also ruled at Rs 5,650 for Spot, Angel brand at Rs 5,850 for Spot, Samrat brand at Rs 5,950 for Spot. While, Chana besan priced flat at Rs 3,275/50Kg, Vatana besan at Rs 2,980/50 Kg and Vatana dal at Rs 5,400.

In Mumbai, Russia/Sudan/Ethiopia/Burma origin kabuli chana remained weak each at Rs 4,325/100Kg, Rs 4,475, Rs 4,400 and Rs 4,600, respectively.

However, quality of Russia Kabuli Chickpea reported to be average amid regular supply of moisture quality pulse.

On the other hand, quality of sudan origin chana was of superior quality with low ready stock.

Kabuli chana of 40-42, 42-44 and 44-46 counts traded weak by Rs 200 at Rs 6,100/100Kg, Rs 5,900 and Rs 5,700, respectively at Indore market amid dull local buying and ongoing arrivals.

In forward business, Russia Kabuli Chickpea offered at $415 and Burma FAQ V7 at $650 per ton in container on CNF basis JNPT for ready shipment.

As per market sources, arrivals in domestic market will be less if prices decline further as sellers will hesistate to liquidate at lower rates and also farmers will be interested to sell their product to government at MSP 4,620/100Kg.

As per market talk, Chana prices are likely to get support further as crushing in Chana/Kabuli Chana has increased due to cheaper prices and easy availability compared to White Pea/Tevda/Batri. Moreover, output of chana is likely to be lower by about 10-15 per cent this season in the country. Lower import quota of White Pea for this year and as the government had not released the quota for millers to import White Pea may also support chana prices.

Imported Masoor (Mumbai):

Canada crimson variety red Masoor in vessel/container along with Australia red Masoor stayed steady at Mumbai due to thin millers trade activity as per requirement for crushing, regular imports, availability of imported stock and following weak trend in Tur.

Buyers were cautious as imports of Masoor may increase if government reduces import duties on the commodity.

Canada origin red Masoor in vessel/container new priced flat at Rs 4,050/100Kg and Rs 4,150, respectively.

Similarly, Australia origin red Masoor also ruled unchanged to Rs 4,250/100Kg against limited stock.

Moreover, demand in processed masoor from consumption centres was reported thin.