Business Daily from THE HINDU group of publications
Friday, Jun 23, 2006
Business Daily from THE HINDU group of publications Friday, Jun 23, 2006 |
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Agricultural Policy Industry & Economy - Exports & Imports Agri-Biz & Commodities - Pulses Centre's ban on exports hits pulses futures Dhimant Bhatt
Bear signals Chana and tur July contracts on MCX & NCDEX hit the 4 per cent lower circuit. Prices of chana, tur and urad to remain subdued for the next few days. Question mark over sale of 51,000 tonnes of chana to Pakistan.
Mumbai , June 22 The Union Government's move to allow the private sector to import wheat and ban exports of pulses, drove prices of wheat and pulses futures down on the national exchanges. Futures prices of pulses on the Multi-Commodity Exchange of India Ltd (MCX) and the National Commodity and Derivatives Exchange Ltd (NCDEX) softened by nearly 4-5 per cent on Thursday on panic selling by operators.
Effect on Sugar
However, there was no such effect on sugar prices although the Government eased norms for import of sugar. Chana and tur July contracts on MCX and NCDEX hit the 4 per cent lower circuit on speculative selling following the Government's decision to halt exports of pulses with immediate effect.
Halt in physical trade
"Pulses trading in the physical market halted immediately after the news flashed this afternoon that the government has put a ban on pulses exports," a Jalgaon-based pulses importer said. Chana July contracts on MCX opened at Rs 2,570 a quintal and touched a day's low of Rs 2,460. The contract finally ended lower at Rs 2,462, down by Rs 108 over the day's opening rate, while the same contracts on NCDEX also fell Rs 125 to end at Rs 2,503. Similarly, tur July contracts prices fell by about Rs 50-70 per quintal on both the platform.
Pak tender
On Saturday, the tender issued by the Pakistan Government to import chana from India was cleared. Around 51,000 tonnes were supposed to be exported from India. "Prices were on the rise after the Pakistan tender news came. Chana spot prices in Delhi markets improved by almost Rs 70-75 a quintal from Saturday," an analyst with Kotak CSL Research said. "We expect prices of chana, tur and urad to remain subdued for a few days. We expect demand in chana to pick up in another 15 days due to demand for festivals from August onwards," an analyst said. Traders expect the prices to firm up in another 15 days. However, there was no major impact on sugar prices.
Imports impossible
"In the current scenario, sugar imports is not possible as the market is in disparity and even landing cost at the current international rates would not be level than Rs 23 per kg," a leading sugar miller said. On the other hand, wheat July contracts on the NCDEX fell Rs 14-15 to end at Rs 866 a quintal on some offerings.
Wheat bearish
"The immediate reaction is bearish for wheat as imports will result in increased supplies which will dampen prices. In the near term, there is enough wheat which will find its way into the trade pipeline, and to some extent outpace demand," an analyst with Kotak CSL Research said. Import news by private players would just result in some panic selling resulting in lower prices, sources said. "As sentiment is bearish, we expect prices to soften further in the near term and wheat prices could even test levels of Rs 820-830 a quintal," an analyst said.
More Stories on : Agricultural Policy | Exports & Imports | Pulses | Wheat
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