Moong Gains Over 13% This Week; More Gains Likely

MUMBAI (Commoditiescontrol) - A mixed tone was observed in pulses complex during the week ended Saturday, with moong among the major beneficiary followed by urad and matar, whereas masoor edged lower and steady trend was witnessed in tur and chana.

Meanwhile government has created a buffer of around 15.33 lakh tonnes of pulses including 4.01 lakh tonnes contracted for imports, said C.R. Chaudhary, the Minister of State for Consumer Affairs, Food & Public Distribution, in written reply to a question in Rajya Sabha today. (Full Report).

Other hand uncertainty continued about fumigation of methyl bromide at the source of origin on pulses. Canada is likely to be hurt most in case India government didn't give extension, which is expiring on March 31. India imports over 60 percent of peas from Canada and nearly 90 percent of masoor.

However India government is likely to defer its implementation of fumigation of methyl bromide from source destinations by a year, which is about to expire on March 31, said a senior government official to a media website. (Full Report)

Urad Long-Term Fundamentals Weak On Ample Supply (Full Report)



Desi Moong (Jaipur) - Desi moong gained over 13 percent this week due to strong demand at the lower level with reports of lower crop in Odisha and West Bengal.

According to trade sources moong production in Odisha, West Bengal and Andhra Pradesh likely to decline sharply hurt by mainly due to scanty water availability for irrigation amid below normal rain in producing regions.

However crop in Rajasthan is abundant and farmers, traders and stockists are trying to cash in news of poor crop in these states, he said.

However sharp rise in prices are unlikely as moong is short duration crop and sowing takes place round the year in producing states.

A trader from Medta, Rajasthan said farmers had already liquidated their produce and now moong is mostly hold by millers and stockists and they are unlikely to sell at these level as they had sourced it earlier at the higher level. Stockists procured moong in bulk quantity with anticipation that risk level below MSP level is least and may get attractive return, which turned out true so far.

Demand is very good for moong as buyers are still bullish over the commodity for short term.

Burma Urad FAQ (Mumbai) - Burma urad FAQ variety recovered from lows and managed to end this week with gain of Rs 1.69 percent supported by good demand from millers and stockists. Traders from Delhi were active in purchasing urad as inventories has mostly dried with them, however they were doing need-based buying due to uncertain future outlook. Demand from retailers were good against restricted supplies from producing belts.

Further supply of domestic crop is mostly thin as most markets in Madhya Pradesh and Uttar Pradesh were closed due to Rang Panchami, which has also acted as positive factor for urad prices.

Burma new crop supply is soon likely to hit Indian ports in bulk quantity as sellers there are active in loading material ahead of Water festival holiday from April 12.

Sharp upside in urad from hereon is unlikely, but downside is limited since supply of domestic crop is thin.

Canada Matar (Mumbai) - Canadian matar edged higher this week supported by good demand from consuming centers. According to trade sources, demand is comparatively good in matar due to lowest in pulse complex and used as substitute for chana, but since availability is higher than demand any major upside unlikely.

Any rise in matar may attract selling pressure as new supply is expected to increase in the coming weeks and farmers will be desperate to liquidate material for financial requirements.

The country is likely to harvest record matar crop this season 2016-17 due to higher acreage and better yield in producing states.

Desi Masoor (Kanpur) - Persistent lackluster demand, continuous overseas supply and prospects of better domestic crop has pushed down masoor prices to multi-year at the key Kanpur market. Buyers are sidelined or buying only as per immediate requirements as they are not in hurry anticipating more correction ahead. New masoor crop has started and flow is expected to increase in the coming weeks. Domestic masoor crop is likely to surpass 11 lakh tonnes and likely to break record production of 11.34 lakh tonnes achieved in 2012-13 due to better yield.

Burma Lemon Tur (Mumbai) - Lemon tur traded flat in thin trade. Prices movement was much restricted due to uncertainty about future outlook. However near term outlook seems to be strong as buyers are active at the lower range anticipating not much room left for sharp downside from hereon with government agencies are actively procuring tur at MSP level.

Lemon tur is mostly consumed by Delhi-based millers as quality is good compared with domestic crop and also available at competitive rates.

Good demand from millers helped prices to trade steady during last week. Temporary rise in tur prices can't be ruled as buyers are active since pipeline are empty due to thin carry over stock left from previous year's crop due to lower production, however sharp upside will be capped due to slow demand in processed tur (tur dal) and continuous flow from new crop.

However there are reports that government is likely to hike duty on tur imports by 15 percent to supports its prices are farmers were forced to sell their produce at below MSP level.

Chana Kantewala (Indore) - Desi chana (Chickpea) ruled steady on limited demand. New crop arrivals has started in the spot markets may keep pressure on prices, however crop quality in Rajasthan is said poor due to adverse weather conditions during growth period, mainly in Bikaner.

Hot temperature has affected chana crop in Bikaner regions, which includes Churu and Jaisalmer, said local traders.

The country is likely to harvest over 93 lakh tonnes of chana this season 2016-17. Supply from Australia and other origin has also keep a lid on prices.

Chana prices may weighed by increase in supply, but lower level may attract buyers to enter to source the commodity for long term requirements.

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