Weekly: Chana Declines Most In Pulses Complex This Week

MUMBAI (Commoditiescontrol) – Chana was major looser in pulses complex during the week ended December 16, 2017 amid lackluster fundamentals. Other pulses have also exhibited bearish tone irrespective to their fundamentals.



CC SPECIAL: Restriction On Chana-Matar-Masoor Import May Support Pulses Price (Full Report)

Burma Lemon Tur (Mumbai)
Burma Lemon Tur prices at the benchmark Mumbai pulses market during the week dropped as much as 1.38% at Rs 3,550/100kg due to lackluster demand from traders and millers ahead of new crop supply of pick up. Burma Lemon Tur so far this month traded in the tight range of Rs 3,500-3,625/100kg.

Activity in processed tur market was not encouraging due to poor off take from retailers and wholesalers. Earlier it was anticipated that monthly demand will support prices, but was not as good as was expected.

Farmers are also not interested to sell their new Tur at lower market prices and waiting for government to start procurement at MSP price.

Tur prices is much depending on the arrivals pressure and quality of new crop followed by government procurement policy.

Meanwhile government is actively liquidating its old stock to avail storage spaces for procuring fresh new tur crop. Stock of old tur stock is depleting which procured by government. Limited stock positions of domestic tur is left with private traders/millers.

Prices of processed tur remained flat due to negligible buying support from Wholesalers/retailers counters. In Maharashtra, processed tur Phatka Sortex quality priced at Rs 5,500-5,550/100 Kg, semi-Sortex at Rs 5,300-5,350 and regular at Rs 5,150-5,200.

Gujarat origin Wasat Phatka variety ruled flat at Rs 5,900-6,000/100Kg, Latur origin at Rs 5,600-5,700 and Jalna origin at Rs 5,800-6,000/100Kg.

Tur prices may find support around current range and sharp fall in prices expected to restricted due to prospects of lower production this season amid decline in acreage and adverse weather conditions during key growht stage.

Further the current lower rates are attractive, which may prompt millers and stockists to start procurement once new crop with good quality sets in.

Burma Urad FAQ (Mumbai)
Burma Urad FAQ variety fell 2.5% at Rs 3,900/100kg at the key Mumbai pulses market. Prices during the week traded within range of Rs 3,900 to Rs 4,100.

The weakness in Burma Urad FAQ variety was attributed to subdued buying support from millers, adequate stocks and regular arrivals of domestic Urad in major market.

Also, there was good selling observed this week from farmers side in Madhya Pradesh as farmers were active in liquidating their stocks even at lower rates as Bhavantar Yojna is valid up to 15 December 2017.

Moreover, demand in processed urad also reported slack from consumption centers at prevailing rates.

At Chennai, Urad FAQ fell by 2.5%, or Rs 100 at Rs 3,900/100Kg amid subdued buying support from millers. However, Urad SQ variety also drifted down by 3.73%, or Rs 200 to Rs 5,150.

Rabi Urad has been sown in 4.78 lakh hectares as on December 13, tad down from 4.79 lakh hectares last year. (Full Report)

According to market talk, stockiest and millers are active purchasing domestic urad at lower rates as prices have fallen well below the minimum support price of Rs. 5,400/100Kgs in domestic market. Prices are likely to get support as demand may continue from North India due to winter season.

Chana Kantewala (Indore):
Lackluster demand, consistent overseas supply and increased rabi sowing pushed down Chana Kantewala prices by 6%, or Rs 250 at Rs 3,900/100kg at the benchmark Indore market. The commodity during the week hovered between Rs 3,850 to Rs 4,000.

Sharp losses on Chana futures also weighed on domestic market. The benchmark January Chana declined 7.5% to settle this week at Rs 3,946/100kg on the National Commodity & Derivatives Exchange Ltd (NCDEX). Volume and open interest in March contract was recorded at 72,360 lots and 45,310 lots.

Chana futures remained under pressure despite of 5% special cash margin slapped by NCDEX on short side on all running contract effective from December 13.

Off take in Chana was very poor from traders and millers due to consistent fall, which has prompted them to wait and watch until prices stabilise. Subdued demand in Chana dal from consumption centers has forced millers to stay away from bulk buying.

Rabi Chan sowing the country as on December 13, 2017 rose 13.69% to 96.23 lakh hectares compared with 84.64 lakh hectares same period a year ago. Sharp increase in acreage was recorded in Madhya Pradesh followed by Andhra Pradesh Karnataka and Gujarat, while sowing was down in Maharashtra, Rajasthan and Uttar Pradesh. (Full Report)

Similarly, Australia origin Chana at Mumbai drifted down by 7.9%, or Rs 350 at Rs 4,075/100Kg and Rs 4,475 respectively following selling pressures on futures, fresh supply around 451 containers from overseas this week at Mumbai and Kolkata port. (1 container = 24 MT).

Vessel M V SUNLIGHT LILY carrying 31140 tonnes of Australia Chana is expected to arrive at Mundra port on December 21.

Australian chana dal priced lower at Rs 5,100/100 Kg due to lackluster trade from wholesalers/retailer’s counters since alternate option of cheapest dal such as Matar dal is available.

Domestic chana dal of Maharashtra also fell by Rs 100 at Rs 5,300 and regular chana dal at Rs 5,150/100Kg. On other hand, Chana besan was weak at Rs 3,250/50Kg. vatana besan at Rs 1,720/50 Kg, On other hand, vatana dal at Rs 3,000.

The consumption of Matar in the country during recent years has increased significantly due to increased spread with Chana. But since Chana prices has dropped sharply in last one month and with narrowing spread, there is higher possibility of demand shift from Matar to Chana to some extent, which may lead to gradual increase in Chana consumption.

Restriction On Chana-Matar-Masoor Import May Support Pulses Price (Full Report)

Imported Masoor (Mumbai):
Canada Crimson and Australia Nugget variety declined nearly 3%, or Rs 100 to Rs 3,300/100Kg and Rs 3,500 respectively in Mumbai due to prevailed subdued millers buying coupled with ample stock and supply from overseas. Demand in processed Masoor also remained slack from consumption centers.

Rabi Masoor sowing in the country as on December 13 rose 1.84% at 15.53 lakh hectares versus 15.25 lakh hectares same period a year ago. Sowing was down in Uttar Pradesh, whereas increased in Madhya Pradesh. (Full Report)

Prices of Masoor likely to get support at lower rates as no supply pressure from overseas and also selective number of importers and participants hold imported Masoor of good quality, which made them reluctant to sell inventories of Masoor at lower rates.

Imported White Pea (Mumbai):
Canada origin White Pea at Mumbai dropped by 0.8%, or Rs 20 at Rs 2,551/100Kgs due to low off take and sharp losses in Chana. But prices are still up by 4% for the month supported by 50% import duty hike by government last month on November 8.

Business activity was slightly on the lower side in Matar during the week compared to last couple of week as buyers holding stocks are expecting some more rise ahead due to supply constraint from overseas.

Demand for processed Matar from consumption centers was reported as per requirement due to cheaper prices compare to processed chana.

Sowing of Matar during the current rabi season as on December 13 declined to 8.46 lakh hectares compared with 8.87 lakh hectares same period a year ago. The fall in acreage was slow pace of sowing in key producing states of Uttar Pradesh and Madhya Pradesh. (Full Report)

Prices of White Pea may get support at lower rates as consumption likely to improved due to cheaper pulses.

Moong (Jaipur):
A more or less steady tone was observed in moong at the key Jaipur market during the week. Desi moong was priced at Rs 5,100/100Kg on limited buying support despite slow arrivals in major states. Millers were interested to purchase superior quality moong.

Rabi moong sowing in the country as on December 13 stood at 1.73 lakh hectares, down 25% from 2.33 lakh hectares last year. (Full Report)

Prices may rise by Rs 200-300/100Kg on millers buying as per sales in Moong Mogar and also commodity trading below MSP but will not sustain due to sufficient availability of stock.

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