Agri Commodities Daily Report 29 February 2024
Gram and lentils rise, pigeon pea slow, prices of other pulses stable
Wheat prices stable, guar gum and seeds fall
New Delhi. The price of gram in Delhi increased by Rs 50. According to traders, there is a possibility of bad weather again in the producing states, hence its price has increased. However, after the weather clears, the arrival of new crop will increase in Rajasthan and Madhya Pradesh, keeping in view the millers 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. In Delhi, the price of gram from Rajasthan rose by Rs 50 to Rs 6,175 to Rs 6,200 per quintal, while the price of gram from Madhya Pradesh increased by Rs 50 to Rs 6,150 to Rs 6,175 per quintal. The daily arrival of gram was 5 to 6 motors.
Rajasthan Line moth prices in Delhi rose by Rs 25 from Rs 6,400 to Rs 6,425 per quintal.
Pigeon pea prices weakened by Rs 50 in Solapur. Lemon pigeon pea prices had weakened by $20 in Chennai on Wednesday. According to traders, stockists want to increase the prices of pigeon pea, but the demand of pulse mills is not getting support. Anyway, the central government is continuously reviewing the prices of pulses. 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, one should not trade assuming a big rise in its price. In Solapur mandi, the price of new desi arhar was quoted at Rs 9,500 to Rs 10,300 per quintal.
Prices of imported urad had weakened in dollar terms in Chennai on Wednesday, but became stable today. The demand for urad dal in wholesale and retail 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 $1,080 and FAQ at $1,010 per tonne.
Moong prices became stable in Delhi. According to traders, the prices of moong had increased on Wednesday, but the demand at higher prices remained limited. Its prices are expected to remain limited bullish and bearish. Whereas due to 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 8,900 to Rs 9,000 per quintal.
The price of local lentils increased by Rs 25. Lentil prices had declined recently. 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 desi lentils was quoted at Rs 5,950 to Rs 5,975 per quintal.
Along with paddy, the prices of Basmati rice remain stable. According to traders, rice mills have high priced paddy, hence they are not selling it by reducing the price. Therefore its prices are expected to remain stable. In Sirsa mandi, the price of DP 1,401 variety of paddy was Rs 4,000 to 4,150 and in Narwana mandi, the price of 1,718 combine was Rs 4,000 and hand was Rs 4,170 per quintal. In Tohana, the price of 1,121 varieties of paddy was Rs 4,370 per quintal.
Wheat prices stabilized at Rs 2,500-2,600 per quintal at Lawrence Road. After Gujarat, arrival of new wheat has started in some markets of Madhya Pradesh, but there is still time for new wheat to arrive in the states of North India. Therefore, there may be a slight improvement in its price but there is no possibility of a big rise.
The central government has stopped the sale of wheat under OMSS, and the state governments of Rajasthan and Madhya Pradesh will give a bonus of Rs 125 per quintal on the purchase of wheat. The MSP of wheat for the current Rabi marketing season is Rs 2,275 per quintal. Therefore, wheat will be purchased from Rajasthan and Madhya Pradesh at the rate of Rs 2,400 per quintal.
In the current Rabi marketing season, the government will purchase 350 lakh tonnes of wheat at MSP.
Maize prices became stable, whereas its prices had increased on Wednesday. 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 the mandis of Bihar after 15 to 20 days. Therefore, its price is expected to remain limited bullish and bearish. In Rajpura, Punjab, the price of feed quality maize was quoted at Rs 2610 per quintal.
Millet prices have remained almost stable. The arrival of millet in the producer markets is decreasing significantly, hence its price is expected to improve in future. In Punjab, poultry feed millet was traded at the rate of Rs 2440 to Rs 2,450 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 have softened. Even today there is a mixed trend in edible oils in the foreign market. The arrival of new mustard in the domestic markets is continuously increasing, and if the weather is favourable, 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.
The prices of edible oil in the domestic market increased by Rs 2 to 10. In Malaysia, palm oil prices in May futures contract rose by 35 rigints to 3,942 rigints per tonne. According to experts, there is no possibility of a big rise in the prices of edible oils in the world market, hence a slight improvement in their prices is expected in the domestic market also.
Soybean prices remain stable in producer markets. There is a declining 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. The prices of soybean, soy oil and meal have weakened in Chicago.
Cotton prices have increased for the third day in the domestic market. The recent increase in the prices of cotton in the foreign market seems to be equal to the decline in its exports, hence due to the continued demand from spinning mills, its price in the domestic market will further improve. Anyway, there will be a decrease in daily arrivals of cotton in the coming days. However, investors may occasionally book profits due to increased prices.
The prices of cottonseed and cotton cake have weakened. According to traders, the daily arrivals of cotton in the producer markets have decreased compared to before, and the arrivals will decrease further in the coming days, hence its prices are expected to increase again in the future.
The prices of guar seed and guar gum have declined. According to traders, its prices had increased due to the activism of stockists, the demand for plots could not remain stable at the increased price. Anyway, there is more outstanding stock of guar seeds with the plants. Exports of guar gum products declined during April to December compared to last year. Therefore, there is no expectation of a one-sided increase in its price right now.