Weekly: Major Pulses Trade Mix; Demand Expect In Dal

MUMBAI (Commoditiescontrol) – Prices of Urad, Australia origin Masoor, Moong declined for the week ending on Saturday (February 12-17) amid dull millers trade activity as sales counters in processed pulses was sluggish. On the other hand, Chana (Indore) and White Pea remained firm on lower level fresh buying support despite adequate stock. While, tur prices remained unchanged on slow trade against adequate stock and arrivals of domestic tur.

Week Highlights

# A Leading Business Newspaper Says Citing Senior Government Officials That Centre May Further Raise Import Duty On Chana & Also Likely To Provide Export Incentives On Pulses Export.
# PM Narendra Modi Calls 2-Day Meeting on February 20 To Discuss Farm Issues.
# Canada PM Justin Trudeau To Visit India Between February 17-23 & Likely To Discuss With PM Modi About Pulses Trade Policy & Broader Trade Interest.
# Maharashtra Government In A Notification Informed For Buying 100% Tur Produced On Land. Earlier It Consider Area At 50% Due To Intercropping With Soybean/Cotton.
# Trader: India 2018-19 (Apr-Mar) Pulses Import Could Decline To 25-30LT against Expected 55-57LT In 2017-18. India Apr-Dec 2017 Pulses Import Stood At 50.8 LT.
# Kenya Government Ask India To Buy At Least 50,000MT Pulses. Kenya Likely To Produce 2LT Pulses In 2017-18 Vs 1LT After India PM Promises To Buy Pulses In Huge Quantity.
# Rain, Hailstorm Damage 190,000 Ha Crops In Maharashtra.
# Australia Agri Dept In Latest (Feb) Report Estimated 2017-18 Masur Crop Lower At 4.65LT From 4.79LT Earlier Estimate (Dec), Down 31.62% From 6.80LT In 2016-17.
# Australia Agri Dept In Latest (Feb) Report Estimated 2017-18 Chana Crop Lower At 10.28LT From 12.65LT Earlier Estimate (Dec), Down 49% From 20.04LT In 2016-17.

Burma Lemon Tur:

Tur Lemon variety of Burma origin remained unchanged at Rs 4,100/100Kg in Mumbai on limited millers demand despite cheaper prices compare to domestic tur and regular arrivals of domestic tur.

On other hand, new domestic tur traded firm at major markets amid fresh millers buying support and lower than expected arrivals of new crop. However, sales counter in processed tur remained slack at existing rates.

Government had also revised their procurement targets of tur in Maharashtra, Karnataka and Telangana to support the farmers.

NAFED Procures (Kharif 2017-18) 273444.879 MT Tur As On 15 Feb At MSP Prices Of Rs 5450. Maharashtra:12646.624, Karnataka:185498.255, Telangana:75300 (Sanctioned Qty Procured).

In Kanpur, Maharashtra origin (Hinghanghat/Nagpur), tur dal new Phatka Sortex quality quoted flat at Rs 6,000, new semi-Sortex at Rs 5,800, new regular variety at Rs 5,700 respectively.

Similarly, Gujarat origin Wasat Phatka variety new offered unchanged at Rs 6,500-6,800/100Kg. Latur origin new Phatka variety also ruled steady at Rs 6,100-6,400/100kg. Jalna origin new phatka variety priced flat at Rs 6,400-6,600/100Kg.

According to market sources, sales counter in processed tur is expected during Holi festive period from wholesalers/retailers due to empty pipeline as they were purchasing as per requirement and also demand shifts from vegetables to tur dal during march month due to hot weather. However, traders and millers were having sufficient stock of raw and processed tur. Regular supply of tur from Burma and Africa at cheaper rates is also pressurized the prices of domestic tur. Traders and millers were interested to purchase imported tur compare to domestic tur at par with MSP.

Burma Urad:

In Mumbai, old and new crop of Burma urad declined by Rs 50 at Rs 3,950/100Kg and Rs 4,050 respectively due to slack millers buying and adequate domestic stock.

Moreover, demand for processed urad from consumption centers also reported good. Bikaner origin branded Urad dal price offered firm at Rs 4,900-5,100/100Kg. Tiranga brand of Mumbai at Rs 5,750/100Kg. Parivar brand of Jalgaon at Rs 5,400/100Kg.

On other hand, at Chennai, Urad SQ gained by Rs 50 to Rs 4,950/100Kg on millers buying activity at lower rates. Moreover, sellers also refrained to liquidate their stock at lower level which supported the price. While, FAQ variety remained unchanged at Rs 4,400/100Kg.

As per market talk, price of urad are already bottomed out and likely to get support at lower rates and decline in imported stock. Domestic urad stock were reported in hands of strong traders and stockiest and were not interested to liquidate their stock at existing lower prices. Buyers and millers from Gujarat and Rajasthan were active to purchase urad at lower prices.

Chana Kantewala (Indore):

In Indore market, Chana prices traded firm by Rs 50 at Rs 3,850/100Kg on local millers buying support and also news that the government may soon raise the import duty to 100 percent (currently at 40%) on Chana and provide incentive on exports of pulses.

On other hand, Australia origin Chana at Mumbai and Mundra port remained unchanged at Rs 3,900/100Kg respectively on increasing arrivals of new domestic chana and slow millers trade as sales counter in chana dal reported slack from wholesalers/retailers counters.

Around 111784.357 tonnes stock of Australia chana reported at Mundra port as on February 5.

At National Commodity and Derivatives Exchange (NCDEX), chana for March contract settled firm by 1.8 per cent or Rs.69 at Rs.3,853/100Kgs. Earlier in the day, the contract slid to Rs.3,772 and touched a high of Rs.3,864 per quintal.

Technically, the trend has turned up. Key resistance and breakout is at 3920. Ideally, cover short positions at market price and on dips to 3830 -3800 levels or below as the opportunity arises. A rise and close above 3920 may push prices towards higher range of 4020 – 4090 levels or above in coming sessions. Buy on breakout above 3920 with a stop loss of 3725 or low of the day whichever be lower at the time of breakout.

Australian chana dal priced unchanged at Rs 4,800/100 Kg on negligible trade from wholesalers/retailers counter. Domestic chana dal of Maharashtra also remained flat at Rs 4,900 and regular chana dal at Rs 4,800/100Kg. Chana besan also offered steady at Rs 2,890/50Kg. Vatana besan quoted stable at Rs 1,790/50 Kg. Vatana dal also trades steady at Rs 3,150.

New kabuli chana 85-90 count of Rayalseema in Andhra Pradesh traded firm by Rs 50 at Rs 5,100 in loose and Rs 5,200/100kg spot loading on slow local buying. Farmers were holding stock and were not interested to sell at lower rates. No stockist was active in the market due to tight liquidity, a local trader said. The commodity offered higher by Rs 100 at Rs 5,700/100kg for Delhi, but no trade was reported. On the other hand, new Coc-2 variety kabuli traded flat at Rs 5,100-5,200/100Kg. Arrivals of Coc-2 variety likely to increase from Monday onwards, he added.

Selective counts 42-44 and 44-46 of new Kabuli Chana offered lower by Rs 100 at Rs 7,900/100Kg and Rs 7,700 respectively in Indore on higher supplies.

At Indore market, Kabuli Chana Dollar variety traded weak by Rs 400-500 at Rs.6,000-7,500/100Kgs on improved arrivals.

Prices of chana likely to get support around Rs 300-400/100Kg for short term period as prices were below MSP and news that the government may increase import duty on the commodity. But unlikely to sustain due to increased sowing area, carry over stock and also arrivals of new chana expected to gain momentum in Madhya Pradesh from fortnight. Madhya Pradesh government's policy to pay the difference of average market price and MSP to farmers has led to a slump prices of pulses elsewhere. The open market rates of several commodities have slipped to half the MSP in the state. The government will have to go for procurement operations in case of chana also to support the prices.

Imported Masoor (Mumbai):

Australia origin masoor in container remained weak by Rs 50 at Rs 3,400-3,500/100kg in Mumbai amid dull millers buying support at existing rates, arrivals of new domestic masoor in Madhya Pradesh and Rajasthan at cheaper prices, availability of MMTC auctioned Canada Masoor (2016) at lower rates and sufficient availability of imported stock. While, Canada crimson variety masoor offered unchanged at Rs 3,350.

Demand in processed Masoor also reported sluggish from consumption centres. Canada Masoor dal of Bhiwandi mills were offered flat at Rs 4,250/100Kgs, for APMC Vashi market delivery on dull trade activity.

Around 99561.491 tonnes stock of imported Masoor reported at Mundra/Hazira port as on February 5.

In forward business, Australia origin Nugget variety masoor was priced at $510 per ton in container on CNF basis Nhava- Sheva for February-March shipment. Canada crimson variety masoor offered at $465 per ton in container on CNF basis For February-March shipment.

Imported White Pea (Mumbai):

Canada, Ukraine and Russia origin White Pea at Mumbai were firmed by Rs 20-30 at Rs 2,731-2,751/100Kgs, 2,671 and Rs 2,621 respectively amid fresh millers buying despite no supply pressure from overseas at Mumbai port.

However, demand for processed Matar from consumption centers was reported good due to cheaper prices compare to processed chana.

Vessel M V Dominique Infinity carrying 25000 tonnes of Ukraine Yellow Pea is expected to arrive at Kolkata port on February 24, according to a shipping agency. Vessel M V Challenger Kasser carrying 21200 tonnes of Ukraine Yellow Pea is discharging cargo at Kolkata port.

Moong (Jaipur):

Moong priced weak by Rs 50-75 in Jaipur market at Rs 4,875-4,900/100Kg during the last week on slack millers trade and sufficient availability of stock. Stockiest were also active to liquidate their old stock of moong to make room to purchase new tur/chana.

Similarly, Moong dal prices priced unchanged at Rs 6,000-6,100/100Kg.

New moong of Ganjam and Puri district of Odisha likely to began after Holi festive.

(By Commoditiescontrol Bureau; +91-22-40015513)