MUMBAI (Commoditiescontrol) - Almost all raw pulses performed bearish during the week ended January 22-28 at the benchmark markets across the country due to lackluster demand with good kharif and rabi crop prospects. Fundamentals for raw pulses in the country remained sluggish as anticipated earlier due to expectation of bumper crop with consistent supply from overseas market.
Desi Chana (Chickpea) (Indore) - Desi chana at the key Indore market edged sharply lower by 8.6 percent at Rs 6,400/100kg during the last week due to lackluster demand, consistent overseas supply and last but not the least nearly record rabi sowing area. Crushers are sideline and hesitant to source the commodity as new chana crop in few territories has started gradually, however peak supply likely to improve after mid-February, which may further weigh on chana prices. Though current chana stocks in the country is insufficient to cater demand, but sentiment has turned bearish due to prospects of better crop due to higher sowing and favorable weather. However there was some reports earlier floating in the market about crop damage in Madhya Pradesh and Rajasthan due to severe cold waves, but agriculture scientists denied any significant losses. Further recent showers in few belts of Rajasthan, Haryana and Madhya Pradesh may be boon for late sown crop. Yield is likely to very good compared to recent years. All these factors has made buyers cautious.
Meanwhile the country has received nearly 79,000 metric tonnes of chana from various overseas destination, but the main contributor was Australia. About sowing the recent agriculture department data revealed chana acreage in the country as on January 25 reached at 98.82 lakh hectares against 89.23 lakh hectares a year ago. Chana production in the country is expected to be more than 9 million tonnes during 2016-17 assuming yield of 941 kilogram per hectares. The country has produced around 7.17 million tonnes of chana in 2015-16, according to fourth advance estimates.
Chana price during the week is likely to perform sluggish and further fall can't be ruled as new crop is likely to gain pace within next 15 days and will be on top by early March.
India Rabi Chana Sowing Progress As On January 25 (Full Report)
Desi Moong (Green Gram) (Jaipur) - Moong prices dropped by nearly 2.2 percent at Rs 4,500/100kg, erasing all gains recorded a week earlier as slow domestic demand with sufficient supplies prompted buyers to source the commodity in restricted manner. Millers are buying moong only as per immediate requirement as they assume that moong will be available at the lower rates throughout the year due to expectations of bumper production and overseas supplies. Further after record kharif moong sowing, acreage rose in rabi season as well to 6.36 lakh hectares versus 6.04 lakh hectares last year (Full Report), which has raised prospects of better crop. Moong production (Kharif+Rabi) in the country during 2016-17 season is expected to surpass government target of 1.87 million.
Moong prices unlikely to see major upside due to robust crop this season 2016-17 against slow demand. Further lower tur prices will also weighed on moong prices as Tur dal (processed tur) will be widely consume against moong dal (processed moong), which will ultimately stress moong.
India Rabi Moong Sowing Progress As On January 25 (Full Report)
Burma Lemon Tur (Pigeon Pea) (Mumbai) - Lemon tur fell 4.21 percent at Rs 4,550/100kg at the key Mumbai market last week after gaining most in pulses a week earlier due to rising supply of kharif crop in Maharashtra, Uttar Pradesh, Gujarat and other producing states. New crop supply is expected to gain momentum, which is likely to keep price under stress. Further supply from Burma is likely to put additional pressure in the commodity. According to trade experts there is high probability of tur to drop below psychological level of Rs 4,000/100kg, however it will be interesting to farmers reaction as lower price may prompt them to hold their produce and sell to government agencies. Farmers has sown more area under tur this kharif season 2016-17 due to lucrative rates, but now prices has corrected around 50 percent from what was around sowing time.
India is likely to produce record 39.65 lakh tonnes of tur in 2016-17, up 92.9 percent from 20.55 lakh tonnes a year ago, Edelweiss Agri Research (EAR) said in a research report. (Full Report)
Burma urad FAQ (Black Matpe) (Mumbai) - Burma urad FAQ variety plunged by 5.8 percent at Rs 5,700/100kg during the last week, and lost nearly 12 percent so far this month. Slow buying from consumption centers pushed down prices in the spot markets, and with new Burmese crop is expected to hit domestic markets further fall can't be ruled out.
Millers, traders and stockists are likely to buy the commodity in limited quantity as they anticipate more fall ahead due to consistent local supplies with new crop from neighboring country Burma is likely to hit India ports. Burmese sellers are offering urad at lower rates.
Urad is mainly consumed in South India and since Pongal festival demand has already met and with expectation of no big demand from there, prices are likely to react ahead due to sufficient supplies against slow demand.
India Rabi Urad Sowing Progress As On January 25 (Full Report)
Desi masoor (Lentil) (Kanpur) - Desi masoor traded mostly flat for the second straight week at Rs 4,800/100kg due to limited demand at the lower level. Domestic buyers are buying the material only as per near term requirement with anticipation of some correction ahead when new crop supply from Uttar Pradesh, Madhya Pradesh, Bihar and West Bengal commence. Further the market is also flooded by overseas supply, which is likely to keep masoor prices pressure. Domestic buyers to prefer to source overseas material due to cheaper than domestic stocks. Masoor sowing in the country has made new record with area surged at 16.64 lakh hectares against 13.67 lakh hectares last year.
India Rabi Masoor Sowing Progress As On January 15 (Full Report)
Canada Matar (Dry Pea) (Mumbai) - Canadian matar edged down by 2.4 percent at Rs 2,441/100kg, but still managed record monthly gain of over 1 percent due to better domestic demand as it is cheapest in the pulses complex and used extensively as substitute for chana. Millers are buying matar for manufacturers for matar dal and matar besan as consumption is good. Buyers prefer it over chana dal and chana besan being very competitive rates. Domestic buyers were little aggressive in matar in recent weeks due to lower risk with slow selling by importers as they were reluctant to sell their produce in losses due to higher import cost. Domestic matar stocks in the country was also scanty resulted buyers to source overseas supply helped matar. But upside in matar is limited due to new crop to soon enter (February end). According to government sowing number matar has been sown in 11.25 lakh hectares versus 9.58 lakh hectares a year ago.
India Rabi Matar Sowing Progress As On January 15 (Full Report)
Other Important Articles
# Nafed Procures 245,827MT Kharif Pulses As On Jan 27 (Full Report)
# Canadian Weekly Pulses Export Declines Second Straight Week - CGC (Full Report)
# Uttar Pradesh Second Adv Estimates For 2016-17 (Full Report)
# Karnataka 2016-17 2nd Adv Estimate: Tur, Moong Crop Likely Higher; Cotton, Chana Down (Full Report)
# Kabuli Chana Crop Likely Bumper; Downside Limited On Empty Pipeline (Full Report)
(By Commoditiescontrol Bureau; +91-22-40015533)