Weekly: Chana Plunges To 7-Month Low; Tur At 1-1/2 Year Low

MUMBAI (Commoditiescontrol) - Chana (Chickpea) plunged sharply to seven month low last week amid lackluster demand, while lemon tur (Pigeon Pea) edged lower to 1-1/2 year low followed by bearish tone in urad (Black Gram/Black Matpe). Moong (Green Gram) recovered a tad with flat tone observed in masoor (Lentil) and matar (Pea).

Chana Kantewala (Indore) - Chana dropped sharply by 14.66 percent at Rs 6,400/100kg at the key Indore market. This is the lowest level since June 9, 2016. Chana plunged by 40.74 percent from the peak level of Rs 10,800/100kg recorded on October 20, 2016.

The sharp losses in chana was mainly due to lackluster demand in chana and chana dal followed by consistent supply from overseas followed by robust rabi sowing this season. Chana sowing in the country as on January 5 reached at 96.82 lakh hectares, highest since record area 99.27 lakh hectares sown in 2013-14 (Full Report). The acreage is expected to make new record since chana sowing is still being carried out in many parts.

Higher sowing and consistent flow from overseas has weighed on market sentiments and prompted them to stay sideline or buy only as per immediate requirement as more downside room still left in the counter. Australia chana for January delivery was last traded at Rs 5,350/100kg, which shows that further fall in chana can't be ruled out.

Chana supply in small quantity has already started in states of Karnataka, Maharashtra and Gujarat, which has also staged bearish tone in the market.

According to CC technical analyst chana spot chart is in downtrend and support of 6200-6000 To Be Under Pressure (Full Report)

Tur Burma Lemon (Mumbai) - Burma lemon tur was second largest loser in pulse complex last week as priced edged lower by 8.33 percent to close at Rs 4,400 in Mumbai, lowest level since July 19, 2014 amid poor off take and supply of new crop. Tur price in many markets across the country has plunged below minimum support price (MSP) level of Rs 5,050 (including bonus Rs 425). Farmers are distress and need cash and hence forced to sell their produce even at the lower level, whereas government agencies are buying with snail speed leaving farmers in dismay.

Domestic millers are less interested to source lemon tur as they were getting good quality pink variety tur grown locally at almost similar rate. Tur new crop has not still gather pace and with bumper crop and robust supply sharp fall in prices ahead can't be ruled out. Government agencies have to pull their shocks and should start procurement process at war foot if they want to arrest sharp fall in tur and provide some smiles in the face of farmers, other tur is even likely to drop below Rs 4,400 as Burma tur crop will also make it way to India ports by month-end. Burmese sellers are likely to offer their produce at the lower level as future outlook is not encouraging with bumper crop expected in India.

Demand in processed tur is sluggish from consumption centers due to expectation of more fall and hence buyers are hesitant to enter in any bulk deals. Wholesalers and Retailers demand are mostly hand-to-mouth.

Arrivals of new tur is yet to pick up in Maharashtra, largest producer in the country, and later from mid of January 2017 in Madhya Pradesh and Gujarat. No stockists are active in the market as prices likely to fell further on increased supply of new crop ahead.

Govt Agencies Procure 250,537MT Pulses From Kharif Crop (Full Report)

Urad Burma FAQ (Mumbai) - Burma urad FAQ lost nearly 7 percent at Rs 6,000/100kg at the benchmark Mumbai market due to low off take and supply from kharif crop. Traders and millers had already sourced sufficient material to meet retail and wholesale demand for Pongal festival.

Inquiries from key consumption centers is mostly subdued for urad in the anticipation that price may ease further ahead of new crop supply from Burma in next one or two weeks. Urad crop in Burma is said to be good and since Indian buyers are not very keen prices are likely to plunge there. Burmese sellers at present are offering SQ variety at $935 per tonne, but there is high probability that prices will correct sharply in next few weeks as Indian importers are asking at lower rates.

Government agencies had sourced 72,448 metric tonnes of urad from kharif crop as on January 4 against target of 130,000 metric tonnes.

Myanmar Awaits India Response On Pulses Deal - Report (Full Report)

Desi Moong (Jaipur) - On the contrary desi moong has recorded opposite trend with prices at the key Jaipur market managed to trade 2 percent higher at Rs 4,600/100kg. Moong price in the local market look like has bottomed out and any sharp fall from hereon unlikely as stockists and millers are buying gradually in low quantity. Government agencies had lifted around 173,961 metric tonnes of moong from kharif crop, beyond target of 105,000 metric tonnes.

India Rabi Moong Sowing Progress As On January 4 (Full Report)

Technical: Moong Jaipur- Resistance Can Be At 5200-5500-5600 (Full Report)

Desi masoor (Kanpur) and Canadian pea (Mumbai) ruled flat at Rs 5000/100kg and Rs 2,401 respectively on limited off take at the lower level. Both the commodity has dropped to bottom level and any major fall from here unlikely, though there is some room in masoor, but not in pea. Demand in pea from consumption centers are said to be good due to cheapest in pulse complex and substitute for chana. Pea is used as processed pea and pea flour (besan) and market and substitute and gain market share of chana, processed chana and its besan when prices are uncompetitive. Any sharp rise in both commodity unlikely due to record crop in Canada and U.S followed by constant supply from both destinations.

India Rabi Masoor Sowing Progress As On January 4 (Full Report)

India Rabi Matar Sowing Progress As On January 4 (Full Report)

India Pulses Import At Chennai & Nhava Sheva Port In MT During Nov-Dec 2016

Pulses	Dec-16	Nov-16	% Change	Dec-16	Nov-16	% Change
	Chennai Port			Nhava Sheva Port
Peas	1128	2448	-53.92	51503	5904	772.34
Chana	3144	864	263.89	137604	120576	14.12
Moong	1800	2208	-18.48	5064	14160	-64.24
Masoor	12864	16032	-19.76	175968	82536	113.20
Tur	5784	9600	-39.75	35568	13656	160.46
Urad	12024	18048	-33.38	1032	0	100.00
Others	1080	1416	-23.73	7392	6672	10.79
Total	37824	50616	-25.27	414131	243504	70.07

(By Commoditiescontrol Bureau; +91-22-40015533)