Weekly: Pulses Extend Fall On Listless Demand In Dals, Liquidity Crunch

MUMBAI (Commoditiescontrol) – All raw pulses such as Tur, Urad, Moong, Chana, Masoor, Kabuli Chickpea, White Pea and Green Pea slipped for a third straight week ended Saturday ( June 03 - 08) on liquidity crunch, sluggish buying support as demand and sale counters were reported lackluster. Sentiments were pressurised after IMD in its latest update said that the monsoon finally hit Kerala coast today after week's delay.

Week Highlights

# Monsoon 2019 Finally Hits Kerala Coast Saturday After A Week's Delay: IMD.
# India 2019-20 Kharif Pulses Sowing Down 50 % As On June 7 At 0.67 Lakh Ha Vs 1.34 Last Year. Tur : 0.05 Vs 0.10, Urad : 0.09 Vs 0.16, Moong : 0.14 Vs 0.55, Other Pulses: 0.39 Vs 0.46.
# Exports of Red Masoor from Canada were up 16 percent in May, compared to a month ago in April. Total shipments in May month reached 73487 MT, up 16 % from 63463 MT in April. So far exports have totalled 881,569 MT, up 61% from 547,839 MT during the previous marketing year. India purchased 20744 MT, UAE 15105 MT and Srilanka 11447 MT in May month.
# White Pea Exports From Canada Up 63% In May, compared to a month ago in April.Total shipments in May month reached 291166 MT, up 63 % from 178727 MT in April. So far exports have totalled 2301021 MT, up 9 % from 2125782 during the previous marketing year.China purchased 141975 MT, Bangladesh 48751 MT and US 42352 MT in May month.
# 3rd Advance Estimates: Total Pulses production during 2018-19 is estimated lower at 23.22 million tonnes from record 25.42 MT in 2017-18, but higher by 2.96 million tones than the Five years’ average production of 20.26 million tonnes.Tur:3.50 million tonnes, Chana: 10.09 million tonnes.
# RBI Cuts Repo Rate By 0.25%; Removes Charges For Payments Via NEFT, RTGS.

Burma Lemon Tur:

Tur Lemon variety of Burma origin declined by Rs 50 to Rs 5,450/100Kg in Mumbai amid dull millers buying support as demand and sale counter in processed Tur was reported slack from consumption centers.

Similarly, domestic tur in bilty trade at Akola also traded weak by Rs 100-125 at Rs 5,950-6,000/100Kg.

Moreover, buyers opted to wait amid pre-monsoon rain in some states and progress of Monsoon.

The DGFT will issue the eligible quantity/quota for pulses imports in 2019-20 between June 10 and 12. The DGFT had earlier on April 16 laid down a procedure for import of a few varieties of pulses for the current fiscal and has invited applications from millers.

Latur origin new Phatka variety priced 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).

Overall, prices are likely to get support ahead because of decreasing domestic arrivals in the wake of lower output and also on concerns over monsoon. Still, 6-7 months are still left in arrivals of new crop. Once monsoon arrives in Tur producing areas, demands for seed for sowing purpose will rise and also arrivals of Tur will dry up in local market as farmers will be busy in sowing. Consumption in Tur dal is likely to pick up as vegetable prices are ruling higher.

Burma Urad:

Burma Urad FAQ variety remained weak by Rs 150 to Rs 4,750/100Kg at the Mumbai market because of slow buying support amid liquidity crunch despite limited stock.

Buyers are cautious amid arrivals of summer crop in Madhya Pradesh (Jabalpur line) /Gujarat (Rajkot line), pre-monsoon rains in some states and as Nafed is also active to liquidate old/new procured stock in selective states.

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

On other hand, In Chennai, Urad FAQ/SQ variety traded almost flat each in the range of Rs 4,800-4,850/100Kg and Rs 6,050-6,075, respectively in ready delivery as per condition.

Bikaner origin branded Urad dal ruled at Rs 6,300-6,500/100Kg for spot. Tiranga brand of Mumbai also traded at Rs 7,051/100Kg for Mumbai delivery, Parivar brand of Jalgaon at Rs 6,400/100Kg for spot.

NAFED has successfully procured 14621.72 MT of Urad 1n Rabi-2019 Season at Minimum Support Price of Rs 5,600 as on June 6, 2019. Tamil Nadu:3379.07, Andhra Pradesh:10731.2, Telangana:43, Odisha:75.45.

As per market sources, prices of Urad likely to depend on progress of the monsoon. However, limited availability of imported stock will support the prices at lower rates.

Chana Kantewala (Indore):

New Chana traded weak by Rs 75 at Rs 4,350-4,375/100Kg in Indore following weak cues from futures, ongoing domestic arrivals and dull millers buying support as demand and sale counters in processed Chana/besan was reported sluggish.

Arrivals in domestic market was reported less as sellers refrained to liquidate at lower rates and also farmers will be interested to sell their product to government at MSP 4,620/100Kg.

Similarly, Australia origin Chana in ready business at Mumbai and Mundra port fell by Rs 100 each at Rs 4,400/100kg, respectively amid dull trade, average quality supply and also due to very limited availability of stock.

Burma origin chana also ruled weak by Rs 100 at Rs 4,300/100Kg.

NAFED Procured 743415.59 MT Chana In Rabi-2019 Season as on June 6,2019.Telangana:34500, Rajasthan:91628.17,Maharashtra:20158.84, Madhya Pradesh:576745.58,Andhra Pradesh:3072.65, Gujarat:17068.4, Haryana:207.6, Uttar Pradesh:34.35.

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 weak by 1.3 per cent or Rs 57 at Rs 4,423/100kg. Earlier, in the day, the contract hovered in the range of 4,415 and 4,510 on Friday.

Chana stocks at NCDEX accredited warehouses stood at 96,286 metric tonnes (Indore: 182, Bikaner 69,930, Jaipur 26,174) as on 6th June, up 95,512 metric tonnes from the previous session, the exchange data showed.

Australian chana dal priced weak by Rs 50 at Rs 5,350/100 Kg for spot on slack trade activity. Domestic chana dal of Pistol brand also ruled weak at Rs 5,550 for Spot, Angel brand at Rs 5,750 for Spot, Samrat brand at Rs 5,850 for Spot. Chana besan also eased at Rs 3,271/50Kg, Vatana besan at Rs 2,961/50 Kg and Vatana dal at Rs 5,350-5,400.

In Mumbai, Russia/Sudan/Ethiopia/Burma origin kabuli chana remained weak each by Rs 50-100 at Rs 4,175-4,200/100Kg, Rs 4,325-4,350, Rs 4,300 and Rs 4,450, respectively.

Kabuli chana of 40-42, 42-44 and 44-46 counts traded unchanged at Rs 6,000/100Kg, Rs 5,800 and Rs 5,600, respectively at Indore market amid thin local buying and ongoing arrivals.

In forward business, Russia Kabuli Chickpea offered at $415 and Burma FAQ V7 at $620 per ton in container on CNF basis JNPT for ready shipment.

As per market talk, Chana prices are likely to get support at lower rates as crushing in Chana has increased due to cheaper prices and easy availability compared to White Pea/Tevda/Batri. Lower import quota of White Pea for this year and as the government has not yet released the quota for millers to import White Pea, may also support chana prices.

But, regular supply of Kabuli Chickpea at cheaper rates is pressurising prices of chana as it is used for crushing for subsitiute of White Pea and also Chana.

Imported Masoor (Mumbai):

Canada crimson variety red Masoor in vessel/container along with Australia red Masoor slipped by Rs 50/100Kg at Mumbai due to dull millers trade activity, regular imports, availability of imported stock and following weak trend in Tur.

Canada origin red Masoor in vessel/container new priced lower by Rs 25-50 at Rs 4,000/100Kg and Rs 4,100, respectively.

Similarly, Australia origin red Masoor also ruled weak by Rs 50 to Rs 4,200/100Kg against limited stock.

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