Week ahead: Urad prices may encounter resistance due to cautious trading at higher rates.

MUMBAI, March 19 (Commoditiescontrol) –During the week ending March 18th, 2023, the prices of Burma Urad in the Indian spot markets continued to rise. This was attributed to various factors, such as strong Myanmar CNF quotes, limited supply from Burma, higher landed costs for importing, and increased mills buying activities for crushing to meet (need-based) consumer demand.

Domestic variety Urad price gained Rs 250-300 to trade at Rs 6,850-7,600/100Kg at Jalgaon on need-based mill demand to meet the immediate requirement for crushing.

Offtake in Urad dal was also good this week, leading to an increase in price by Rs 150-200 at Rs 9,300-10,050/100Kg at the Mumbai market.

This week, there was a price increase for the new crop in the Krishna district (Andhra Pradesh) in the domestic markets. The price rose by Rs 200 and last traded at Rs 7,700-7,750/100kg for Guntur-Vijayawada delivery. Moreover, the Branded Urad Gota variety witnessed a price rise of Rs 300 and closed



Burma Urad FAQ-SQ, CNF Chennai settled higher each by $30-$40/MT at the Yangon market as local stockiest were busy buying and accumulating stock due to less crop this year compared to last year. As per Burma based local trader, sellers may turn active and release some quantity in the markets, once Urad FAQ touch $900 Fob basis and SQ at $1000 FOB basis.

The Burmese kyat was unchanged versus the US dollar. It was 2850 Kyat/dollar, the same as the previous week.



As per the technical chart - Burma Urad FAQ (Mumbai) - Positive short term trend / Next resistance at Rs 7,450. Click here

Trend: The Urad prices may face resistance at higher rates as mill buying is expected to slow down at higher rates. Moreover, the sale of Urad dal is still below expectation which may limit demand for raw Urad. Even though the percentage of bold variety in quality is less in the Rabi new crop in Andhra Pradesh, arrivals pressure is likely to increase in Krishna & Prakasam districts due to a good crop. Additionally, trade volume is expected to be lower in the coming days due to the financial year-end drawing closer and the financial liquidity crunch that usually accompanies it. Furthermore, supply from Burma is likely to increase at higher rates as stockists and traders may book profit in stock procured at lower prices earlier.

(By Commoditiescontrol Bureau; +91-9820130172)