Week Ahead: Urad to trade weak tracking falling Burma's CNF quotes

MUMBAI, 19 Nov (Commoditiescontrol): Burma Urad prices traded weak for the week ended on 19th Nov 2022, tracking Myanmar falling prices. Further, the thin mills' buying due to the below-expectation offtake of processed Urad, cheap supplies from Burma at regular intervals, and the new Kharif domestic arrivals have all added pressure.

As per a Chandausi-based local trader, the arrival pace of good quality Urad is likely to increase to around 3000-4000 bags on daily basis in the coming days.

Around 408 containers (9,792 MT) arrived at Chennai port between Nov 1 to 5, 2022. Each container is 24 MT.

However, the depreciation in Rupee to 81.61 against the USD makes imports costlier.


India 2022-23 Rabi Urad acreage was down 6.03% (compared to the same period last year) as of Nov 18 at 1.87 Lakh Ha Vs 1.99 Last Year.



At Guntur, Urad polished and unpolished slipped down each by Rs 350 at Rs 7,650/100kg and Rs 7,450, respectively. Similarly, branded Urad Gota also declined by Rs 350 to Rs 9,800.

At the Yangon market, the Urad FAQ-SQ varieties were offered lower by $15 each on a CNF Chennai basis.

As per Burma-based local traders, stockists were active in selling their stock as they are more interested in procuring new moong crop arrivals for which have begun in the local market, and free up funds to procure upcoming new Tur-Urad crop is likely to arrive from Dec end-Jan. further Singapore-based traders who used to act as intermediaries between Indian buyers and local sellers as now Indian buyers are able to remit payments through Indian Banks which will reduce buying costs for Indian buyers. Burmese currency remained unchanged at 2900 Kyat/dollar.



Trend: Sentiments in Urad were under pressure due to the continued fall in Myanmar's prices. Moreover, sellers were active in Burma as arrivals of new Moong crops started at the local Burma market, and the upcoming Tur-Urad new crop to began from Dec-Jan. Urad prices will continue to track CNF quotes of the Burma market and the Rupee’s movement against the USD. Meanwhile, below-expectation offtake in processed Urad, ongoing domestic arrivals at Lalitpur and Chandausi line Urad arrival pace likely to increase in coming days have kept prices under pressure. However, prices may get support at lower rates as traders-millers were active in purchasing a good quality new Kharif Urad considering lower crop is expected this Kharif season due to lower acreage, crop damage due to excessive rainfall during the Kharif harvesting period and also demand for processed Urad expected to rise during the winter season. Depreciation in the Rupee against the USD makes imports costlier. Moreover, weather will be key for rabi sowing in the Urad belt as IMD predicts heavy rainfall in Tamilnadu, parts of Andhra Pradesh on 21-22. On a monthly trend, Burma Urad SQ at Chennai price decreased by around 4.31%, weekly basis down by 1.89% and on annual basis up by 4.36%.

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