MUMBAI, May 08th (Commoditiescontrol): During the week ending on May 8, 2023, the price of Burma Urad continued to rise due to several factors. These included increased buying activity from millers looking to crush the Urad to meet consumer demand, a pick-up in Urad dal offtake, limited supply from Burma, limited ready stock from imports, and higher landed costs.
Government officials are currently visiting pulses warehouses in Chennai and inspecting stored goods. Stockists have been advised to clear any old stocks that have been in storage for over a month or risk having their materials seized and their warehouse sealed.
In Chennai, the forward deals for the Burma Urad SQ variety saw the price for ready delivery trade at Rs 8,475-8,500 per quintal, while the price for June delivery was Rs 8,650-8,700. However, Burma Urad SQ is trading lower by $15 at 1040 CNF.
Similarly, the forward business deals in Chennai for Burma Urad FAQ variety saw the price for immediate or May delivery trade at Rs 7,700 per quintal. Burma Urad FAQ closed $15 weak at $940 CNF.There is import disparity in both SQ and FAQ varites of Burma Urad.
In Jalgaon, the price of desi Urad remained unchanged for the week and was traded at Rs 7,500-8,000 per 100 kg, depending on quality.
The latest update from the Jabalpur market reports that the current price range of new domestic Urad is between Rs 9,200-9,500/100Kg. Currently, only 50-60 bags of Urad have arrived in the market, and the quality of these bags contains 12-13% moisture. Adverse weather conditions have resulted in a smaller quantity of Urad arrivals, but Urad's arrival in the market is expected to increase in the coming days.
In the Mumbai market, the price of Urad dal increased by Rs 100 per quintal for the week and was traded at Rs 10,100-11,000 per 100 kg. This price increase was due to good demand at retail counters.
The new rabi crop of Urad from the Krishna district saw a higher price range for Vijayawada delivery, trading at Rs 7,950-8,000 per 100 kg, representing an increase of Rs 100. Similarly, the Guntur delivery price also rose by Rs 100 to reach Rs 7,900-7,950, driven by need-based buying. In addition, the Branded Urad Gota variety saw a firm close at Rs 10,200 per 100 kg.
Traders in Burma report that the available stock of Urad in the country is held by strong hands, who are not keen to sell their stocks at current prices as they anticipate further price increases. This week, local and Pakistan buyers were active, with Pakistan purchasing Urad SQ new at $995/PMT FOB basis for ready shipment. Furthermore, the exchange rate between the Burmese kyat and the US dollar remained stable at 2,850 Kyat per dollar, which is the same as the previous week.
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Based on the latest update as of May 5th, 2023, the sowing area for India's summer Urad crop has increased by 1.27% to 3.19 lakh hectares, compared to 3.15 lakh hectares sown during the same period last year.
As per technical chart - Urad SQ (Chennai)- Positive short term trend/ Next resistance at Rs 8,750 Click here
As per technical chart - Urad FAQ (Mumbai) - The breakout above resistance at Rs 7,500 may trigger another leg higher towards Rs 8,000. - Hold longs. Click here
As per technical chart - Urad SQ $ (Burma) - Positive short term trend / Next Resistance at $1125. Click here
Trend: In the near term, it is expected that the prices of Urad will remain range-bound or face resistance at higher rates due to a decrease in buying by millers at those rates. The upcoming summer crop arrivals in Madhya Pradesh will also contribute to this trend. Additionally, trade volumes have significantly decreased due to strict government oversight of stock, with authorities warning traders and stockists to offload any stock that has been in their godowns for over a month. As a result, there is currently only need-based buying in the market. However, the actual stock in warehouses is low due to reduced supply from Burma, leading to import disparity.Despite these factors, prices may receive support at lower rates as supply from Burma is not sufficient to fulfil the demand from mills for crushing purposes. Ultimately, the direction of Urad prices will depend on the pace of imports and the landed cost of Burmese Urad at Indian ports.
(By Commoditiescontrol Bureau; +91-9820130172)
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