Slackening demand in contrast to over-supply led to weakening of the pulses market last week. The foodgrain market, on the other hand, strenthened during the period.
Wheat and rice traded on a steady note on hopes of a rise in the export demand. Wheat dara hovered in the range of Rs 640 to Rs 670 per quintal despite a marginal fresh festival buying, the prices ruled steady mainly owing to trucks freight firming by Rs 4-5 per quintal following increase in petrol and diesel prices.
Reports that hard wheat prices in Australia had gone up from $226 to $232 per tonne FOB had buoyed chances of export from India.
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Prices of rice permal shot up by Rs 15-30 per quintal from Rs 815-950 to Rs 830-980 owing to procurement by the governmental agencies coupled with the FCI releasing old stock in restricted quantities. Coarse rice too strengthened by Rs 20-25 at Rs 730-785 per quintal. Common basmati supplies from the new crop which are expected in a month kept its price subdued at Rs 3,100 and Rs 3,550 per quintal.
In pulses, importers off-loaded inventories in Maharashtra and Madhya Pradesh in view of slackened demand from the South leading to a price drop of urad by Rs 25-60 at Rs 1,350-1,690 per quintal.
Although Rangooni urad rose initially, it fell back later to settle at Rs 1,585 per quintal. Approaching new crop of arhar saw the importers off-loading stocks. That coupled with slow demand from eastern states led to a major drop in arhar prices by Rs 85-90 at Rs 1,550-1,740 a quintal.
Rangooni arhar too weakened by Rs 35 at Rs 1,700 per quintal. Dal arhar dara and patka were the worst affecetd with prices dropping by Rs 100 at Rs 1,900-2,250 per quintal.
On the flip side, upward trend in Chinese moong in Mumbai had a similar impact on the Maharashtrian variety which strengthened by Rs 50-100 at Rs 1,400-2,375 per quintal. The Rajasthani variety, however traded dull at around Rs 2,425 per quintal.
Gram rode on Diwali buying and gained Rs 20-25 at Rs 1,880-1,925 per quintal, thereby continuing the rising trend from three weeks ago when it was pegged between Rs 1,740 and Rs 1,780 per quintal. Gram dal too flared up by Rs 145 at Rs 2,070 per quintal.
Rajmash red shot up by Rs 150 to settle the week at Rs 2,525 per quintal. Arrivals of around five railway rakes during the week from Andhra Pradesh and Karnataka saw maize prices tumbling by Rs 40 lower at Rs 580-600 per quintal. Oats lost Rs 50 at Rs 1,050 due to the arrivals to Rajasthan mandis.
Release of excessive sugar to the markets following a court order weighed heavily on the trading sentiment in the mill delivery sugar.
According to traders, weakening of sugar was due to the Mumbai High Court allowing sugar millers of Maharashtra to keep only 10 percent levy sugar stock with them and sell the rest of the stock to the open market.
Already in Uttar Pradesh, some sugar millers had started selling non-quota sugar in the open market with the permission of the Court. Besides, there were reports that some millers in South were selling a part of imported raw sugar after refining it.
These factors resulted in over supply of sugar in the open market and pressure on prices. Mill delivery sugar traded at range bound prices and settled lower by Rs 19 at Rs 1,150-1,241 per quintal. Spot sugar ended weaker by Rs 10 at Rs 1,375 per quintal.