MUMBAI (Commoditiescontrol) - It was great last week as most pulses recorded decent gains driven by uncertainties about duty rise, adverse weather in few parts led by good demand from stockists and millers. Chana was the major gainer followed by moong, masoor, matar, urad and tur.
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Chana Kantewala (Indore) - Chana recorded sharp gain of over 17 percent during last week (March 20-25) due to improved demand from millers amid empty pipeline, lower than expected domestic crop supplies, rising prospects of re-launch of chana futures. New crop supply was hurt in the country due to rain/hailstorm in few states. Chana average daily supply in Rajasthan was pegged at 50,000-70,000 bags (100kg each), but likely to increase up to 1.5 to 2 lakh bags on daily basis ahead.
Further supply of chana from Australia has slowed down in the recent weeks as bulk of shipment has already arrived and consumed. Domestic demand is now entirely dependent of local crop. Inventories are mostly dry at the consumption centers due to poor carry-over stocks from last year's crop followed by stock limit and uncertain future outlook.
Chana price was supported by trade estimates of lower production. Indian government in second advance estimates pegged chana output at 91 lakh tonnes, however traders expect it in the range of Rs 70-75 lakh tonnes due to poor yield in Rajasthan.
Chana dal prices rose nearly 15 percent at 7,800-7,900/100kg during the last week in domestic market, while besan moved up nearly 8 percent at 4,250/50kg has also helped market sentiments. Demand for chana usually remain on the higher side every year between mid-March to mid-April.
According to trade sources "A cartel is active in chana to drive price on the higher side, so it can liquidate it stocks and gain profit.
Australia chana (New Crop 2017) at the key Mumbai market rose to Rs 5,300/100kg for October-November with condition that buyers and sellers will bear 50-50 percent in case government raise import duty.
Moong (Jaipur) - Moong was the second highest gainer in pulses with rise of nearly 12 percent on strong stockists demand with reports of lower crop in Odisha, West Bengal and Andhra Pradesh.
According to trade sources moong production is expected 50 percent lower in Odisha as crop was hurt by poor water availability for irrigation due to below normal monsoon in 2016. The worst hit districts are Ganjam, Nayagarh, Puri and Cuttack, which are the main moong producing belts in the state. The crop is expected at 10 lakh bags and supply of new crop likely to start from April.
Further crop in Vijaynagaram and Sri Kakulam district of Andhra Pradesh was also said to be poor. Similar the conditions are not favorable for crop either in Trichnapalli (Madurai), Tamil Nadu and few parts of West Bengal.
Earlier stockists have stocked moong in good quantity with anticipation that risk is least at the lower level and may provide good return on their investment.
However sharp rise in prices are unlikely due to better crop in Rajasthan. Moreover, moong crop in the country is cultivated throughout the year in the country and thus crop is mostly available abundantly for domestic consumption. After Odisha crop in April, summer crop of Madhya Pradesh, Gujarat and Maharashtra will be available in May month followed by West Bengal crop by May-end and then Bihar crop from first week of June.
Canada Masoor Crimson (Mumbai) - Imported masoor followed bullish movement in other pulses and jumped up more than 8 percent on improved millers buying, firm cues in domestic market. Farmers were holding their stocks with expectations to liquidate their material at the higher level. Further concern about crop loss in north Bihar due rain/hailstorm has also supported the strong tone. But any sharp rise from hereon unlikely due to consistent supply from Canada amid record crop.
Two break bulk vessel with around 18,710 tonnes masoor and 98,678 tonnes white pea from Canada is expected to reach at Mumbai port in near future. Also, India government is likely to allow pulses imports without fumigated by methyl bromide for next few month will led to constant supply from there at least in the near future.
Canada Matar (Mumbai) - Good demand from consumption centers pushed Canadian matar higher by 5.46 percent during the week. According to trade sources, demand is comparatively good in matar as it is cheapest in pulse complex and used as substitute for chana, but since availability is higher than demand any sharp rise is unlikely. Domestic matar is available at competitive rate compared to imported. Any rise in matar may attract selling pressure as new supply is expected to increase in the coming weeks and farmers will be desperate to liquidate their produce for their financial requirements. Likely extension on imports from overseas without fumigated by methyl bromide will also weigh on prices.
Burma Urad FAQ (Mumbai) - Burma urad FAQ variety edged higher by 4.17 percent due to good demand from millers and slow arrivals. Demand from retailers were good against restricted supplies from producing belts. Supplies has mostly dried up as import cargo had been frozen at Chennai sea port since March 17.
According to trade sources urad prices had improved substantially so far, this month and now sellers having stocks in Uttar Pradesh/Madhya Pradesh are interested to liquidate their inventories as they are now getting good returns compared to a month ago. Arrivals of rabi crop urad is going on in Andhra Pradesh, but crop and yield is low in Srikakulum, Tenali and Krishnur district.
Burma new crop supply is soon likely to hit Indian ports in bulk quantity as sellers there are active in loading material as Burmese markets will get closed from April 12 for 'Water Festival'.
Burma Lemon Tur (Burma) - Lemon tur was recorded least gains in pulses complex last week due to good local and overseas supplies. The rise in prices was mainly on reports that government considering to raise import duty. In between around 442 containers of tur arrived in the country last week as overseas sellers are keen to dispatch material sot hat cargo reaches indian shores before government imposes import duty .
Meanwhile government has procured 800,000 tonnes of tur from farmers at a minimum support price of Rs 5,050/100kg this kharif season. Agencies are likely to continue tur procurement up to April 15.
Tur price in the spot market is well below minimum support price as higher supplies weighed.
More than 50-60% of new crop of tur already harvested and farmers have encashed their produce. Due to recent rise in prices, farmer likely to hold their stock to get better prices in near future.
As per market talk, if central government imposes import duty on pulses, tur market will bounce back for short term, but prices will not sustain at higher rates as bulk buyers/millers/traders are not buying aggressively due to stock limit in domestic market and sellers will be keen to sell their stocks in every bounce back in prices.
Prices of tur had gained mainly on buying by stockiest and millers as prices had corrceted sharply and rumor of impostion of import duty, driven by rising demand from retailers/wholesalers and also stocks held by farmer as they were reluctant to sell at low prices.
In Maharashtra (Hinghanghat) Processed tur Phatka Sortex quality rose Rs 200 at Rs 6,800-6,900/100Kg during last week, while semi-Sortex priced at Rs 6,650 and non Sortex at Rs 6,450-6,500.
(By Commoditiescontrol Bureau; +91-22-40015533)
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