Urad buying weak due to increasing pressure of arrivals

11-Nov-2024 06:28 PM

Weekly Review - Urad (October 2024)
Market Overview: Urad prices experienced a decline in various regions last week due to an increase in the availability of Desi Urad, weaker demand from dal millers and stockists, and increased arrivals in key producing markets. As a result, there was upward pressure on Urad prices, with a noticeable slowdown in buying activity. Here’s a detailed analysis of the developments across different markets:

Chennai:
Price Movement: Chennai Urad saw a decrease of Rs 50 per quintal last week. The price for FAQ Urad remained at Rs 8425 per quintal, while SQ Urad prices were at Rs 9225 per quintal at the weekend.
Reason for Decline: The pressure on prices can be attributed to weak demand from dal millers and stockists, coupled with increased arrivals.
Mumbai:
Price Movement: Similar to Chennai, Urad prices in Mumbai dropped by Rs 50 per quintal last week, with the price for Urad remaining at Rs 8650 per quintal by the weekend.
Reason for Decline: Weak buying activity and increased arrivals led to downward pressure on the market.
Burma:
Price Movement: Burma Urad prices declined by $15 per tonne for both FAQ and SQ grades due to sluggish export demand. The price at the weekend stood at $990 per tonne for FAQ and $1085 per tonne for SQ.
Reason for Decline: Weakened demand from export markets led to reduced prices.
Delhi:
Price Movement: In Delhi, the price of Urad FAQ declined by Rs 75 per quintal, while SQ fell by Rs 100 per quintal. By the weekend, the prices were Rs 8550-8575 per quintal for FAQ and Rs 9500 per quintal for SQ.
Reason for Decline: The drop in prices is attributed to weak buying by dal millers and a reduction in port prices.
Madhya Pradesh:
Price Movement: Prices in Madhya Pradesh saw a significant drop of Rs 150-300 per quintal. By the weekend, prices were as follows:
Ashoknagar: Rs 5000/7500
Jabalpur: Rs 5500/8000
Kareli: Rs 5301/6818
Damoh: Rs 5500/8100
Indore: Rs 7500/8500
Reason for Decline: Increased selling by farmers and weak demand contributed to the decline in prices across the state.
Maharashtra:
Price Movement: Prices in Maharashtra saw a drop of Rs 100-200 per quintal. The prices at the weekend were as follows:
Akola: Rs 8700
Latur: Rs 6000/8300
Solapur: Rs 6100/8600
Dudhni: Rs 6000/8850
Ahmednagar: Rs 5500/8000
Reason for Decline: A slowdown in demand from dal millers and reduced trading activity contributed to the price fall.
Other Regions:
Andhra Pradesh: In Krishna district, Urad prices dropped by Rs 125 per quintal, while prices in Vijayawada dropped by Rs 100 per quintal. Prices in Krishna district were at Rs 8900 per quintal by the weekend.
Uttar Pradesh: Prices in Chandausi dropped by Rs 200 per quintal, with the price at Rs 8200 per quintal by the weekend.
Reason for Decline: Weak buying across these regions, along with increased arrivals, caused the decline in prices.
Urad Dal:
Price Movement: Due to sluggish buying, Urad dal prices also witnessed a drop of Rs 100-200 per quintal during the last week. Prices at the weekend were:
Delhi: Rs 10850/11550
Bhatapara: Rs 11100/11200
Jalgaon: Rs 11700
Meerut: Rs 9500/10000
Indore: Rs 10000/11700
Reason for Decline: Weakened demand from end-users and dal millers led to the price corrections in Urad dal.
Conclusion:
The Urad market faced a challenging week, with weak buying, sluggish demand from dal millers and stockists, and a steady increase in arrivals across various producing markets. The combination of these factors led to a decline in prices in key regions such as Chennai, Mumbai, Delhi, and Maharashtra. Additionally, weak export demand also contributed to a reduction in Burma Urad prices.

With the harvest season underway and increased availability, further downward pressure on prices may continue unless demand picks up or weather conditions impact future supply.