Agri Commodities Daily Report 24 February 2024
Gram and arhar recession, prices of other pulses stable
Wheat prices stable, guar gum and seeds soft
New Delhi. Gram prices in Delhi have weakened by Rs 40 to 50 for the second consecutive 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 40 to Rs 6,225 to Rs 6,235 per quintal, while the price of gram from Madhya Pradesh declined by Rs 50 to Rs 6,175 to Rs 6,200 per quintal. The daily arrival of gram was 13 to 14 motors.
Rajasthan Line moth prices remained stable at Rs 6,400 per quintal in Delhi.
Pigeon pea prices weakened by Rs 175 in Solapur. According to traders, the price of lemon arhar in Chennai has weakened in dollar terms in the last two days, due to which there is pressure on its prices in the domestic market also. On the other hand, the Central Government is continuously reviewing the prices of pulses, hence one should not do business assuming the prices have increased. 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. In Solapur mandi, the price of new desi arhar was quoted at Rs 9,500 to Rs 10,400 per quintal.
The prices of imported urad had softened for the second consecutive day in Chennai on Friday, although the prices of desi urad in the domestic market remained almost the same. 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. The arrival of new crops will increase further in the coming days. 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 expected to remain bullish or bearish. In Chennai, urad SQ price was quoted at $1,110 and FAQ at $1,020 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, the price of Rajasthan Line moong remained stable at Rs 8,900 to Rs 9,100 per quintal.
The prices of local lentils became stable, although Thursday has been continuously slow for the last two days. 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. According to traders, due to less outstanding stock, the arrival of old local lentils is decreasing in the producing 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 there is little chance of a major decline. Record production of lentils is estimated in the current Rabi. In Delhi, the price of local lentils was Rs 6,100 per quintal.
Along with paddy, the prices of Basmati rice became stable. Traders’ eyes are fixed on Gulf Food in Dubai, if export deals are good then the prices of Basmati rice may improve once again. In Sirsa mandi, the price of DP 1,401 variety of paddy was Rs 4,000 to 4,346 and in Ratia mandi, the price of 1,401 variety of paddy was Rs 4,245 per quintal.
Wheat prices remained stable at Rs 2,425 to Rs 2,450 per quintal on Lawrence Road for the third day. 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.
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 Punjab, millet was traded at the rate of Rs 2440 to 2450 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 remain stable. Although the prices of edible oils have opened high in the foreign market today, 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. The prices of mustard oil became stable, while the prices of flour also stopped.
Edible oil prices became almost stable in the domestic market. Palm oil prices in Malaysia remained limited bullish, bearish in the current week. According to experts, there is no possibility of a big rise in the prices of edible oils in the world market, hence its prices are expected to soften in the domestic market also.
Soybean prices remain stable in producer markets. There was a mixed trend in its price abroad at the end of the current week. 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.
Cotton prices stabilized in the domestic market. However, in the current week, cotton prices increased in the foreign market. According to experts, due to increase in the prices of cotton in the world market, its export seems to be falling, hence due to continued demand from spinning mills, its price in the domestic market will not decline much. Anyway, there will be a decrease in daily arrivals of cotton in the coming days.
The prices of cottonseed and cotton cake have declined. 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, but 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 the producer markets has decreased compared to earlier. Therefore, mild bullishness and recession may persist.