Tur prices firm up on late harvesting

Tur prices have firmed up by nearly 2 per cent on late harvesting and delayed arrivals in Maharashtra and Karnataka.

On the National Commodities and Derivatives Exchange (Ncdex), tur futures for November delivery today touched a high of Rs 1,900 a quintal. However, at close, it was trading at Rs 1,868 a quintal, Rs 37 a quintal higher than the Monday level. Tur for December delivery increased to Rs 1,851 from Rs 1,819 a quintal on Monday. New tur crop is expected only in December.

Besides the delay in harvesting, the lower crop estimate of kharif tur was also driving up the prices, an analyst with Karvy Commodities said. The 2006 kharif estimate for tur is pegged at Rs 20.95 lakh tonne against last year's 21.8 lakh tonne.

"Tur will continue to trade in the Rs 1,850-2,000 a quintal range till arrivals of the crop start in December. In November, prices are expected to rule firm," he added. Chana futures, on the other hand, remained volatile throughout the day. After touching a high of Rs 3,124 a quintal, chana for November delivery was trading at Rs 3,055 a quintal. The commodity saw only a marginal Rs 11 a quintal rise since Monday.

While urad futures for November delivery fell to Rs 3,662 a quintal from Rs 3,704 a quintal on Monday, urad for December delivery fell from Rs 3,643 to Rs 3,554 in the same period. Increased arrivals in Maharshtra and a fall in trade post-Diwali put pressures on urad, the analyst said.

Meanwhile, though crushing of sugarcane for the 2006-07 sugar season has already got off to a start, sugar prices have not yet shown any declining trend this week. On the Ncdex, sugar for November delivery rather moved up a tad, from Rs 1,810 to Rs 1,833 a quintal since Monday.

Unconfirmed reports of the sugar export ban getting lifted supported the upmove of the prices. Analysts are apprehensive that sugar prices could shoot up once ban is withdrawn. Industry, however, sees no possibility of a price rise.

"The opening stock on November 1 is about 25 lakh tonne. The mills should produce about 22 lakh tonne. Even if the country consumes 17 lakh tonne in November, we still have a surplus of 30 lakh tonne at the end of the month," an industry source said.

To contain sugar prices, the Indian Sugar Mills Association has, on its part, committed to supply sugar at Rs 18.50 a kg to the kendriya bhandars and civil supply shops in Delhi.