MUMBAI (Commoditiescontrol) - Chana (Chickpea) was the among the major gainer in pulses complex this week ended Saturday with steady tone witnessed in Urad (Black Gram), whereas Matar (Peas), Moong (Green Gram), Tur (Pigeon Pea) and masoor (Lentil) declined in the absence of any major demand followed by continuous supply.
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Chana (Rajasthan Line: Delhi) - Chana surged more than 12 percent this week ended Saturday at the benchmark Lawrence road market of Delhi on strong demand from millers against tight supply. Chana arrivals at the Lawrence road during the week (Oct 1-8) dropped 35 percent at 175 trucks against 270 trucks same period a year ago. The drop in supply is mainly due to lower production in 2016-17 marketing year (Mar-Feb) amid adverse weather condition.
According to data compiled by commoditiescontrol.com production was down at 55 lakh tonnes due to drought condition in key producing states. With adding opening stocks of 1.1 lakh tonnes from previous crop and projected import of 12 lakh tonnes.
The availability of chana for marketing year 2016-17 sum at 68.1 lakh tonnes, while domestic demand of chana is likely at 67 lakh tonnes, leaving ending stocks of only 1.1 lakh tonnes. Tight balance sheet is the main reason behind the the strong chana market. Further availability of chana dal in the market is limited as well, as millers are operating below capacity due to huge volatility in price. Chana, Chana dal and Besan consumption usually remain at the peak level during September-November period due to various festivals like Navratri, Dussehra and Diwali.
Uncertainty about Australia crop due to adverse weather has also added fuel to the fire, however now trade sources revealed that shipment from the country is expected to hit Indian shores up to November 20 with 35,000 metric tonnes.
Around 353 container (each container 24MT) of chana have reached at Mumbai port this week, which has pressured chana prices as major buyers turned sideline. Importers were active in selling their stock at current prices. However long term outlook is still positive as demand for chana seed for sowing purpose. More chana seed will be required for sowing against last year as acreage is likely to increase due to better prices followed good soil moisture amid rainfall.
Urad (Burma Urad SQ - Mumbai) - Urad after volatility during the week ended mostly flat. Burma urad FAQ during the week touched high of Rs 8,500/100kg, however some selling pressure pressured to price to end at 8,000/100kg. Demand at current level in urad is said to be good amid concern about domestic crop due to heavy rainfall in growing regions.
The recent rainfall has damaged to standing crop extensively along with quality. The harvested crop reaching at the markets are mostly inferior and hence the difference between the inferior and premium quality has increased. South India based millers are buying premium quality urad due to empty pipeline as crop was lower last year and slow supply from Burma. Poor supply from Burma was mainly as local sellers are reluctant to sell their produce at the lower rates. Stockists and millers are active as well in urad and buying good quality produce in the range of Rs 7,000-7,500.
According to trade sources stockists are buying as they are expecting quality will be poor from next round of supplies due to recent rainfall. Earlier their was assumption among market participants that urad (premium quality) will fall below Rs 5,500, but since the recent rainfall has not only hurt the crop but also quality, they have turned positive and now they bet price of premium quality will not fall below Rs 6,500/100kg (Latur New Urad Premium Quality: Rs 8,000).
Further Nafed is buying urad above the MSP price of Rs 5,000/100kg for buffer stock. Nafed as on October 6 procured 2634.187 metric tonnes urad from various states. The government agency on October 6 procured urad at lowest rate of Rs 6566.96 from Pipariya (Madhya Pradesh) and sourced at highest rate of Rs 7651.41 from Kalaburgi (Karnataka).
Urad price may trade steady to negative bias in the near term due to expectations of supply to improve if weather favours and forecast of 6 lakh tonnes of crop in Burma and around 1.5 lakh ton carry-forward stock. New crop in Burma starts from January and reach India by February-March.
Matar (Canada-Mumbai) - Matar declined most in pulses complex as it lost nearly 8 percent during the week amid continuous flow from overseas market against dull domestic demand. Buyers are hesitant to source matar at current level as they are bearish in the commodity due to projection of record crop in Canada. Further importers are selling their produce procured at the higher level due to more fall likely ahead. Further activity in the market is slow at major consumption centers like West Bengal, Uttar Pradesh and Bihar due to Navratri festival.
Moong (Jaipur) - Moong was second major loser with 5.7 percent in pulses complex due to lack of buying support from Nafed as the arrivals in the markets contains higher moisture. Nafed procures moong not beyond 12 percent moisture content. Nafed has procured around 2104.732 tonnes of moong as on October 6 from various markets of the country. Nafed buying is very slow due to higher arrivals of moisture content material.
However stockists and millers are active and buying as per their requirements. Supply of moong has started from most producing states including Rajasthan. Moong price unlikely to rise sharply due to expectations of robust production this season followed by continuous flow from overseas market.
Tur (Lemon-Mumbai) - Tur lemon remained under pressure throughout the week due to slow demand from millers as new crop is expected to hit domestic market from next month onwards. The country is expected to produce bumper tur this year due to sharp rise in acreage. Buyers are hesitant to source tur as they expect prices to tumble after supply from new crop.
Millers are buying as per their demand as they don't want to be caught at the higher level as have incurred huge losses since last year amid huge volatility in prices. Further retailers and wholesalers as well buying as per their requirements despite limited availability with them due to low crushing.
Around 683 containers of tur have arrived at the Mumbai ports, mostly from African countries, which is sufficient to meet current poor domestic demand.
Masoor (Kanpur) - Masoor this week plunged more than 3 percent due to hand-to-mouth demand and weakness in broad pulses like Tur, Moong and Matar. Masoor demand is said to be as per requirements due to expectations of record crop in Canada, however recent rainfall has hurt quality of crop and delayed the harvest as well. Around 95 percent of Canadian crop has been already harvested.
(By Commoditiescontrol Bureau; +91-22-40015533)
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