Weekly: Urad, Masoor, Chana Gain Most This Week, Moong Weakens

MUMBAI (Commodities control) – Urad, Masoor, Chana and Kabuli Chickpea moved higher for the week ended 12th September amid mills buying activity, while Moong prices slipped on increased new arrivals. On the other hand, Tur prices ruled steady to firm on limited mills buying.

Weekly Highlights

# Ongoing Kharif sowing is marching ahead at a good pace. Kharif sowing area reached 1104.54 lakh hectare which is 59.36 lakh hectare (5.68%) higher than acreage for the same period of last season. Normal area for the same period is 1067.73 lakh hectares.
# India kharif pulses sowing as on Sep 11 was up 4.64% at 137.87 lakh hectares as against 131.76 lakh hectare during the same period last year.
# Rains to Lash South India Seen until September 23.
# A La Nina weather phenomenon has probably appeared, with a 70% chance of continuing through the northern hemisphere winter, Japan's weather bureau said on Thursday.
# Conditions may turn favourable for withdrawal of the South-West monsoon from extreme North-West India next week (September 11-17), according to Mrutyunjay Mohapatra, Director-General, India Meteorological Department (IMD).
# Production of Australia Chickpea is forecast to increase by 152% to 7.08 lakh tonnes during the year 2020-21, according to ABARES crop report September 2020. Similarly, area planted to chickpeas is forecast to increase by 93.16% to 508,000 hectares.
# Production of Australia Masoor is forecast to decrease by 7% to 4.97 lakh tonnes during the year 2020-21, according to ABARES. Similarly, area planted to Masoor is forecast down by 6% to 338,000 hectares.

Burma Lemon Tur:

Tur Lemon variety of Burma-origin, both old and new, almost remained steady at Rs 5,700-5,900/100Kg, in Mumbai amid thin mills buying due to average quality despite lower availability of imported Tur stock.

Similarly, domestic variety Tur also traded flat to Rs 6,425-6,450/100Kg at benchmark market Akola, on slow local and outstation mill purchase as limited trade activity in Tur dal was witnessed at Wholesale/retail counters.

Meanwhile, millers were unable to procure good quality Tur for crushing due to negligible arrivals. Sellers are unwilling to liquidate in anticipation of price rise.

India 2020-21 Kharif Tur Sowing was Up 6.41 %, as on September 11, at 48.11 Lakh Ha Vs 45.21 Last Year.

Around 4000-5000 tons of new Mozambique Tur is likely to arrive during September end. Nearly 3000 tons of red variety Mozambique tur and rest gajri/white variety is expected to arrive during the period.

Buyers are still cautious and trading as per their needs on expectations that Indian Government may allot quota license of 4 lakh tons Tur to millers in September.

Government agency is selling old raw Tur to the mills for processing, packaging and supply of processed Tur under PDS.

Small traders and stockiest were active in liquidating their domestic Tur stock in the markets as they have to purchase new Moong.

As per market view, tur prices may be underpinned due to negligible arrivals and lesser availability of imported Tur. Demand and sale counter of dals are expected from mid-September. Supply from Mozambique is expected from September end.

Burma Urad:

Price of Burma Urad FAQ new variety gained Rs 350 to Rs 6,650/100Kg, in Mumbai.

Similarly in Chennai, Burma Urad FAQ/SQ varieties also moved up Rs 400-500 at Rs 6,600/100Kg and Rs 7,750 respectively, due to better mill buying activity against limited ready stock and no supply pressure from overseas.

Moreover, forecast of rain and cloudy weather has supported the prices due to fear of crop damage as kharif crop harvesting is going on. Recent rains already damaged crop and quality of Urad.

Although the mills are purchasing as per immediate crushing requirement as arrivals pace of new kharif urad has increased at producing centers.

Southern and North Indian millers are actively purchasing good quality new Urad with lesser moisture content from Maharashtra.

Meanwhile, good offtake was witnessed in processed Urad.

India 2020-21 Kharif Urad Sowing is up 1.03 %, as On September 11, At 38.27 Lakh Ha Vs 37.88 Last Year.

Chana Kantewala (Indore):

Chana prices extended rally for the sixth straight week by Rs 100 to Rs 5,050/100Kg in Indore due to rise in future and declining government stock with NAFED releasing large volume of chana to government for distributing to the poor people under welfare schemes.

Nafed has target to distribute Chana under (PMGKAY) around 9.73 lakh tonnes till 30 November 2020. About 4.73 lakh tonnes has been dispatched so far.

Chana, currently, appears to be in complete grip of speculators and pushing up chana prices in the future on apprehension of declining government stock.

Moreover, good demand in chana dal and besan was reported from consumption centres

meanwhile arrivals of seasonal domestic Chana are limited. Millers were facing difficulty in procuring good quality Chana for crushing. Hence, they are purchasing from Nafed. Nafed is actively liquidating stock at higher rates, but rejected bids of lower rates.

In Mumbai, Tanzania-origin Chana traded steady to firm by Rs 5,050-5,075/100Kg due to less ready stock.

Russia-origin Kabuli Chana gained Rs 50 at Rs 5,150/100Kg, Sudan-origin Kabuli Chickpea was also moved higher Rs 100 at Rs 5,300.

As per market talk, Chana prices will likely be underpinned as consumption may continue amid festive season. Lesser ready stocks and negligible overseas supplies of Kabuli Chickpea and White Pea may support Chana prices further. However, supply of Chana/Kabuli Chickpea supply is expected by September end, but parity is higher.

Meanwhile, NAFED has indicated that the chana stocks procured so far will be sold through various government schemes announced (PMGKAY).

Imported Masoor (Mumbai):

Canada crimson variety and Australia-origin Masoor in Mumbai pushed higher for second straight week, by Rs 50-75 at Rs 5,350-5,450/100Kg and Rs 5,550, respectively in Mumbai, amid mills’ buying on immediate requirement for crushing, following firm trend in other pulses and no further supply pressure likely from overseas.

Similarly, Canada crimson variety Masoor at Hazira and Mundra port gained Rs 50 each, at Rs 5,351/100Kg, respectively.

However, availability of imported raw and processed Masoor stock at cheaper rates and thin offtake in processed Masoor will limit the gains.

In forward business, Canada red Masoor No 2 priced at $565 per ton in container on CNF basis for Nhava Sheva/Kolkata against October-November.

Imported White Pea (Mumbai):

White Pea prices ruled unchanged at Rs 6,500/100Kg at Kanpur market on limited trade at higher rate despite negligible stock of imported White Pea..

On the other hand, price of White pea dal and besan remained weak by Rs 50-100/100Kg on thin activity. Crushing of White Pea for making dal, besan by mills were less interesting due to unavailability of White Pea. Major mills have halted the crushing activity in White Pea.

Customs department has not release the imported pulse, as the release will be contradicting the government’s existing policy.

Moong (Jaipur):

Moong prices declined for second straight week by 200 to Rs 6,500-6,600/100Kg in Jaipur market of Rajasthan, as per quality, amid thin mill buying as demand and sale counters in processed Moong reported limited participation.

Moreover, arrivals of new Kharif Moong crop have increased in Karnataka, Maharashtra and Telangana due to favourable weather. Moisture has reduced by around 11-16 percent on new moong arrivals.

The buyers were interested in good quality supplies, for immediate processing requirement.

But, forecast of rain and cloudy weather will support prices amid fear of crop damage. Recent rain has, reportedly, damaged crop and affected quality of Moong.

India’s 2020-21 Kharif moong sowing is up 16.12 %, as on September 11, at 35.66 Lakh Ha.

In Merta market of Rajasthan, Moong crop is expected to be good and likely to arrive within 8-10 days. Only 5-10% damaged may be damaged.

In Kishangarh, only 10-15% moong is likely to arrive within 15 days as crop was damaged due to less rain during growing stage and weak rains after flowering stage as well.

Similarly, 35-45% Moong crop may arrive at Kekri. Millers are active in purchasing summer crop Moong from Madhya Pradesh.

New Moong crop has been reported to be good at Nagaur, Pali and Sumerpur belt.

As per Rajasthan based traders, Moong prices of good quality are unlikely to slip below Rs 6,000-6,500/100Kg. Government is also actively procuring good quality new Moong at MSP of Rs 7,196/100Kg. No carryover stock of old Moong was reported with government and private traders.

(By Commodities control Bureau; +91 9820130172)