MUMBAI (Commoditiescontrol) - Urad recovered from recent sharp losses, whereas chana, tur, moong, masoor and matar exhibited bearish tone due to bearish fundamentals as new local crop and overseas supply weighed on prices.
Burma Urad SQ (Chennai) : Burma urad FAQ variety at the key Chennai market witnessed edged higher this week ended Saturday by over 6 percent supported by some improved off take at the lower level. New csrop supplies continued to mounting in the domestic spot market, but sellers were reluctant to off load their produce at the lower level. Overseas supplies are limited, but cues from key producer Burma is not encouraging either as prices were in negative territory there as well due to lacluster demand from Indian buyers.
Urad in the near term unlikely to see any sharp rise due to abudant local crop. Domestic millers are buying urad mainly Madhya Pradesh, Uttar Pradesh and Rajasthan origin urad due to better quality, whereas less interested for Maharashtra urad amid quality issue and higher rates.
Desi chana (Indore) : Chana dipped around 3 percent during the week due to weak demand in processed chana, availability of cheaper substitute and good rabi sowing progress.
Fundamental in chana is positive, but good rabi sowing progress along with slow demand in chana dal may cap any sharp rise from hereon followed by cheap availability of processed peas (Vatana dal) and peas flour (besan), a close substitute for chana dal and besan, whereas sharp losses will be arrest by lower stocks in the country. The country requires more than 5 lakh tonnes of chana on monthly basis to feed its population. Any major correction in chana prices will be decided mainly on Rabi chana crop, which will hit domestic spot market from Feb-end or early March.
Burma Lemon Tur (Mumbai) - Burma lemon in Mumbai extended losses by nearly 2 percent this week due to rising supply of new crop. Millers are hesistant to source as they anticipate more fall ahead due to record crop expectations and slow cosumptoin of tur dal due to ample availability of vegetables. Vegetables are close substiture for tur dal and availability is plenty at very competitive rates. Furter consumers are inclined towards cheaper alternatives due to cash crunch amid demonetisation.
Desi Masoor (Kanpur) - Abundant overseas supply, higher sowing data and slow local demand pressured masoor price as it fell further by around 2 at the Kanpur market during the week. Slow demand from millers, sufficient old stock of domestic crop in Madhya Pradesh and Uttar Pradesh and also following weak trend in masoor prices. Higher supply in break bulk vessel from overseas and regular supply at Mumbai port had escalated the pressure on masoor.
Millers prefer to source imported masoor since domestic masoor of Madhya Pradesh, Uttar Pradesh and Rajasthan origin is higher than overseas origin.
Desi Moong (Jaipur) - Desi moong plunged over 2 percent at the Jaipur market due to poor demand and higher production forecast for current season 2016-17. According to trade sources moong prices has already bottomed out and sharp losses from current level unlikely as landed cost of imported moong is costlier. Further demand in processed moong is likely to improve ahead of Makar Sankranti on January 14, 2017. Moreover supply pressure of moong is currently witnessed only from Rajasthan, whereas slowed in Madhya Pradesh and Uttar Pradesh.
Canada Matar (Mumbai) - Canada matar went down by 1.3 percent during week ended Saturday after trading flat a week ago. Selling pressure is not as great as in other pulses as it is cheaper in pulse complex and importers are not interested to sell at the lower rates as their landed cost is higher against prevailing spot rates. Matar prices in the near term likely to trade more or less around current range in near term.
(By Commoditiescontrol Bureau; +91-22-40015533)