Mumbai, April 23 (Commoditiescontrol): During the week ending on April 22nd, the prices of Canada-origin crimson variety and Australia Masoor saw a decline in Kolkata markets, owing to slow mills buying, as the demand for Masoor dal remained weak. Additionally, the ongoing domestic arrivals of Masoor impacted the demand for imported Masoor. Bulk buyers and stockiest were also sidelined as the government directed states to monitor stock, creating fear of stock survey by government officials in the near future.
Similarly, in Kanpur markets, the price of domestic-origin Masoor fell by Rs 75/100Kg due to weak offtake in Masoor dal, which was caused by thin buying from millers and traders. The situation was exacerbated by the fact that new Masoor arrivals have gathered pace at producing centers. For Delhi delivery, Madhya Pradesh-origin Masoor prices also extended losses by Rs 75/100Kg due to dull mills buying at prevailing rates.
In Mumbai, the price of Masoor dal produced from Canadian-origin Masoor decreased by Rs 50 to Rs 7,150-7,350/100Kg due to dull offtake. Similarly, the commodity produced from domestic-origin Masoor at Katni saw a decline of Rs 125-150 and was priced at Rs 6,375-6,850/100Kg.
As of April 23, 2023, the National Agricultural Cooperative Marketing Federation of India (NAFED) has procured 176 metric tonnes (MT) of Masoor in Uttar Pradesh at the Minimum Support Price (MSP) of Rs 6,000 under the Price Support Scheme (PSS) during the 2023 Rabi season. According to sources, NAFED has also procured 5,609 MT of Masoor in Madhya Pradesh, although this information has not yet been updated on their website.
International Updates
The Canadian lentil export for August to February 2022-23 is expected to be higher than the previous year, with a total of 0.5 Mt. The forecast for the entire crop year is 2.3 Mt, with Turkey, the United Arab Emirates, and India being the top export markets. The rise in export demand is expected to lead to a decrease in carry-out stocks, but the average price for all lentil types is projected to decrease due to increased world supply and carry-out stocks. Saskatchewan's on-farm price for large green and red lentils increased in March, with large green lentils expected to maintain a higher price than red lentils in the coming year.
For the 2023-24 crop year, the area seeded in Canada is expected to marginally decrease to 1.73 Mha due to higher expected returns for other crops. Despite this, production is expected to rise to 2.65 Mt, and supply is anticipated to increase to 2.8 Mt, with exports predicted to remain unchanged at 2.3 Mt. However, carry-out stocks are expected to rise, putting pressure on prices, which are projected to decrease from 2022-23 due to increased world supply.
In the United States, the area seeded to lentils is expected to decrease by 21% compared to the previous year, with a projected 0.52 Mac for the current year, and the seeded area is also expected to decrease in North Dakota and Montana.
Trend:The market may find support at lower levels as sellers may be hesitant to sell at prevailing prices which are below the Minimum Support Price (MSP). Masoor arrivals in major producing states like Madhya Pradesh (MP) may also slow down as farmers are preoccupied ing sell and delivering wheat to government agencies.
The pace of imports is also sluggish as domestic arrivals are strong. There is not much incentive to import Masoor since it is trading at a premium of 150-200 per quintal to domestic origin Masoor. Moreover, Masoor dal offtake, which typically slows down during Ramadan, is expected to pick up after the festival.
Moreover, Masoor prices will likely receive support towards the end of April as global buyers will likely become more active after Ramadan. The International Cost and Freight (CNF) quotes for Masoor have stabilized, further supporting the prices.
The crucial factor that will determine the Masoor price trend is government procurement and CNF quotes for international Masoor. If the government procures Masoor intensively at MSP and international quotes remain steady, we may see a range-bound trend in Masoor prices due to matching demand and supply.
(By Commoditiescontrol Bureau; +91-9820130172)
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