Imported Urad prices fell but Indian market remained stable

23-Nov-2024 10:00 AM

Imported Urad prices fell but Indian market remained stable
The Urad market has shown mixed trends recently, with imported Urad prices falling, but the Indian market remaining relatively stable. Here's a summary of the key points:

Indian Market Price Movements:
Mumbai Urad FAQ opened at ₹8550 at the start of the week and closed at ₹8350 on Friday, down by ₹200.
Chennai Urad FAQ dropped by ₹150, from ₹8325 on Monday to ₹8175 on Friday. Similarly, SQ in Chennai also fell by ₹150, settling at ₹9000 per quintal.
Despite the price drops, there was no significant movement in demand or supply, and market conditions were relatively stable.
Imported Urad Prices:

There was a notable decline in the price of Urad from Burma (Myanmar):
On 4th November, Burma Urad FAQ was priced at $1005 and SQ at $1100.
By 22nd November, prices dropped to $935 for FAQ and $1040 for SQ.
The fall in Burma Urad prices could be attributed to weaker demand, though the ongoing decrease in stock levels in Myanmar may provide upward support for prices in the future.
Market Fundamentals:

Weak Domestic Production: The production of Urad in India this year is reported to be weak, which is limiting the pressure of arrivals in the domestic markets. This could help maintain price stability in India despite falling import prices.
Myanmar's Sowing Season: Sowing for the new Urad crop in Myanmar is progressing, with expectations of an increase in the area under cultivation. The new crop is expected to arrive in January/February of next year, which could impact market dynamics once it enters the supply chain.
Outlook:

With stock levels depleting in Myanmar and new sowing underway, there is potential for upward pressure on prices in the future as the gap between supply and demand may widen, particularly with Myanmar being a significant exporter to India.
In conclusion, while Urad prices have seen a decrease in Burma, the Indian market has remained stable due to weaker domestic production and lower arrivals. However, the depletion of stocks in Myanmar and the upcoming new crop could lead to price fluctuations in the coming months.