Agri Commodities Daily Report 26 February 2024
Pigeon pea prices slow along with gram, prices of other pulses stable
Wheat prices rise, guar gum and seeds soften
New Delhi. Gram prices in Delhi have weakened by Rs 10 for the third consecutive working day. According to traders, the weather is clear in the producing states, hence the arrival of new crops will increase in the coming days. There will be pressure for arrival of new crops after Holi in Rajasthan and Madhya Pradesh. Therefore, at this time the mills are purchasing only as per requirement. Therefore, one should not trade assuming great bullishness. However, the production estimate of gram in the current season is low, and good quality old gram is less in the markets. Therefore, the chances of a big unilateral decline are still less. In Delhi, the price of gram from Rajasthan declined by Rs 10 to Rs 6,100 to Rs 6,125 per quintal, while the price of gram from Madhya Pradesh declined by Rs 10 to Rs 6,050 to Rs 6,075 per quintal. The daily arrival of gram was 10 to 12 motors.
The price of Rajasthan Line moth fell by Rs 50 to Rs 6,350 per quintal in Delhi.
Pigeon pea prices weakened by Rs 100 in Solapur. According to traders, the prices of lemon arhar in Chennai had weakened in dollar terms at the end of last week. The central government is constantly reviewing the prices of pulses. Anyway, the mills are not getting support for the demand for increased price of Pigeon pea. According to experts, pulse mills are purchasing pigeon pea at increased prices only as per requirement. The arrival of local pigeon pea will continue in the producer markets, and the import of lemon pigeon pea will also increase in the coming days. In view of the new crop, millers are also purchasing as per requirement. Therefore, there may be a slight improvement in its price, but one should not do business assuming it has increased. In Solapur market, the price of new desi arhar was quoted at Rs 9,500 to Rs 10,300 per quintal.
The prices of imported urad had declined in Chennai last week. According to experts, the demand for urad dal in wholesale and retail in the spot market is weaker than normal, and the arrivals of new urad have increased in Krishna district. On the other hand, new urad is arriving in Orissa also. Due to the strictness of the Central Government, the mills are purchasing urad only as per the requirement. However, due to the consumption season, South India’s demand for urad dal will increase in the coming days. According to experts, the total production estimate of urad in the current season is likely to be less. Therefore, its prices are now expected to remain limited bullish and bearish. In Chennai, urad SQ was quoted at $1,090 and FAQ at $1,010 per tonne.
Moong prices remain stable in producer markets even today. According to traders, there is limited rise and recession in the prices of moong. Due to it being the consumption season, the demand for moong dal from the consuming states will still remain, and the production estimate of moong in Kharif has reduced. There was a reduction in sowing in the current Rabi. Anyway, the daily arrival of moong in the producing states has decreased compared to earlier. However, NAFED is continuously selling moong. Therefore, there is no possibility of a unilateral increase in the prices of moong and recession. In Delhi, Rajasthan line moong prices remained stable at Rs 8,800 to Rs 9,000 per quintal.
The prices of local lentils have stabilised, although their prices had declined last week. According to traders, the arrival of new lentils has started in the markets of Madhya Pradesh, and if the weather remains clear, after Holi, the arrival of new lentils will increase in Madhya Pradesh as well as Uttar Pradesh. Record production of lentils is estimated in the current Rabi. However, due to less outstanding stock, the arrival of old desi lentils is decreasing in the producer markets, while the demand for lentils from the consuming states of Bihar, Bengal and Assam is expected to remain the same. Importers also do not want to reduce the prices, hence there may be a slight softening in the current prices, but the chances of a major decline are still less. In Delhi, the price of local lentils was Rs 6,025 per quintal.
Along with paddy, the prices of Basmati rice became stable. According to traders, export deals of Basmati rice have been done in good quantity in Gulf Food, hence there can be an improvement in the prices of rice from here once again. In Sirsa mandi, the price of DP 1,401 variety of paddy was Rs 3,800 to 4,211, PB 1 variety of paddy was priced at Rs 3,500 to 3,825 and in Ratia mandi, the price of 1,401 variety of paddy was Rs 4,181 to 4,212 per quintal.
Wheat prices rose by Rs 25 at Lawrence Road from Rs 2,450 to Rs 2,475 per quintal. After Gujarat, arrival of new wheat has started in some mandis of Madhya Pradesh and if the weather remains clear, its daily arrival will increase in the coming days. The government will stop the sale of wheat with OMSS in the states of North India from March 1. Therefore, there may be a slight improvement in its price but there is no possibility of a big rise.
Maize prices remain stable. According to traders, the arrival of old maize in the producer markets has reduced compared to earlier, while the arrival of Rabi maize will start in Bihar by the end of the current month. Therefore, its price is expected to remain limited bullish and bearish. In Sangli Mandi, maize prices ranged from Rs 2375 to Rs 2,425 per quintal.
Millet prices stabilised. The arrival of millet in the producer markets is decreasing significantly, hence its price is expected to improve in future. In Karnal, millet was traded at the rate of Rs 2430 per quintal.
Barley prices remain stable in the producing markets. According to traders, the demand for barley from malt companies will still remain, due to which there is no possibility of a major decline in its price. The outstanding stock of barley is low, while the new crop will arrive in March, April.
Sugar prices remain stable. Traders are not too bearish on sugar right now, anyway the consumption season will start next, hence the demand for sugar is expected to remain. Sugar production in the current crushing season is estimated to be 333.5 lakh tonnes.
Mustard prices are expected to soften. Today the prices of edible oils opened weak in the foreign market. The arrival of new mustard in the domestic markets is continuously increasing, and the weather is favourable. Therefore, there will be pressure for arrivals in the coming days, anyway the production estimate for the current season is high. In such a situation, no big rise in prices is expected. There is pressure on the prices of mustard oil and mortar.
Edible oil prices became almost stable in the domestic market. In Malaysia, palm oil prices fell by 8 rigints to 3,845 rigints per tonne in May futures contract. According to experts, there is no possibility of a big rise in the prices of edible oils in the world market, hence a slight softening in their prices is expected in the domestic market also.
Soybean prices remain stable in producer markets. There is a mixed trend in its price abroad. Therefore, traders are not very bullish on its price in the domestic market. At present the daily arrivals in the producer markets will remain the same, while the plants are purchasing only as per requirement. In Chicago, the prices of soybean and meal have increased, while those of soy oil have declined.
Cotton prices stabilized in the domestic market. Cotton prices opened weak in the foreign market. According to experts, the prices of cotton had increased in the world market last week, due to which its exports seemed to be falling, hence due to the continued demand from spinning mills, there will not be much decline in its prices in the domestic market. Anyway, there will be a decrease in daily arrivals of cotton in the coming days.
The prices of cottonseed and cotton cake have stopped. Traders are not yet in favor of a big rise in cottonseed and cotton cake. The daily arrivals of cotton in the producer markets have definitely started decreasing compared to before, and the arrivals will decrease further in the coming days, although the subscription is also weaker than normal.
The prices of guar seed and guar gum have softened. According to traders, demand from plants for guar seeds remains limited because the plants have high outstanding stock of guar seeds. Exports of guar gum products declined during April to December compared to last year. On the other hand, its daily arrival in producer markets has decreased compared to earlier. Therefore, mild bullishness and recession may persist.