Tur prices up 3.5% on reports of low output

A lower crop estimate of tur desi has started showing its impact on the futures market. On the National Commodity & Derivatives Exchange (Ncdex), the near-month contract for tur desi closed at Rs 1,876 a quintal on Tuesday, rising 3.5 per cent over the last Monday's (December 4) close of Rs 1,812 a quintal.

Reports of crop failure in Maharashtra and Karnataka have been doing the rounds for some time now. Karnataka is expected to see a decline of 30 per cent in its production. Market sources estimate the overall reduction in production to be around 4 lakh tonne.

"Since the last week, traders have discovered some value buying in the tur market, which otherwise was subdued in terms of prices," said Sumeet Ramchandani of Angel Commodities. "This year's crop size is estimated to be between 21 and 23 lakh tonne against the last year's production of 25 lakh tonne," he added.

The country generally produces tur in the range of 22 to 26 lakh tonne a year. The new crop from Madhya Pradesh and the northern belt of Maharashtra is expected to arrive by the next month. In the mandis of Latur and Osmanabad, the new crop has started arriving, but in less quantity.

"In Latur, the fresh arrival of tur is 1,000 bags (each bag of 100 kg), which is among the lowest. It will gradually go up to 10,000 to 15,000 bags," said Sanjay Darak, a Latur-based trader. The new arrivals have hit the spot prices. But traders said it is a temporary trend and the crop production will be on the weaker side.

On Tuesday, the spot prices in Latur dropped in the range of Rs 2,070 a qunital from the previous day's levels of Rs 2,180 a quintal, mainly because of the pressure of the carry-forward stock. "The carry-forward stock in Latur is around 25,000 bags and traders want to offload them," added Darak.

In Osmanabad, the spot prices on Tuesday were quoted at around Rs 2,075 a quintal. "The crop is on the weaker side and the tur market is expected to continue with strong sentiments," said Raju S Miniyar, an Osmanabad-based trader.

On the Ncdex, the near-month contract for tur desi closed at Rs 1,876 a quintal on Tuesday, rising 3.5 per cent over the last Monday's (December 4) close of Rs 1,812 a quintal

Market sources estimate the overall reduction in production to be around 4 lakh tonne

This year's crop size is estimated to be between 21 and 23 lakh tonne against the last year's production of 25 lakh tonne

The new arrivals have hit the spot prices. But traders said it is a temporary trend and the crop production will be on the weaker side.