Indian Moong Weakness Meets Firm Global Lentil Values
Indian moong prices soften on higher arrivals despite weak kharif sowing, while Canadian and Chinese lentil offers in EUR remain broadly steady.
Prices
In India, new-crop moong prices have corrected by roughly USD 21/mt to around USD 675–873/mt as increased summer arrivals in Kanpur, Allahabad and other Uttar Pradesh markets improved spot availability and strengthened buyers’ bargaining power. Processed moong dal prices, however, remain comparatively stable, with chilka at about USD 987–1,216/mt and dhoya quality at USD 945–1,195/mt, reflecting steady retail and mill demand.
Converted into approximate EUR terms (assuming 1 USD ≈ 0.92 EUR), this places raw moong around EUR 621–803/mt and processed dal roughly at EUR 870–1,119/mt, underscoring a clear premium for value-added product. On the export side, recent offers for Canadian lentils (FOB Ottawa) are broadly stable: Red football types around EUR 2.10/kg, Laird green at about EUR 1.28/kg and Eston green at roughly EUR 1.24/kg. Chinese small green lentils FOB Beijing are quoted near EUR 1.07/kg (conventional) and EUR 1.15/kg (organic), also showing only marginal week-on-week movement.
Supply & Demand
Indian supply dynamics are currently driven by strong summer moong arrivals rather than the kharif outlook. National kharif moong sowing stood at roughly 69,000 hectares as of 12 June, sharply below about 154,000 hectares in the same period last year, and Gujarat’s early planting also lagged. Yet, traders report that plentiful summer crop inflows into Uttar Pradesh hubs are more than compensating in the short term.
Despite this cushion, macro indicators point to a more fragile medium-term pulse balance. Official updates show overall Indian kharif sowing about 16–21% below last year, with pulses acreage, including moong, trailing as the monsoon remains deficient across many districts and El Niño risks persist. Dal mills are therefore buying primarily for immediate processing needs, avoiding aggressive stock-building while uncertainty around the 2026 kharif pulse harvest remains elevated.
In the moth complex, planting has yet to start on a meaningful scale, with only scattered sowing reported in Gujarat. Moth prices have slipped around USD 5/mt to roughly USD 603/mt (≈ EUR 555/mt), following weakness in moong, although processed moth dhoya remains stable near USD 790–795/mt (≈ EUR 727–732/mt). This confirms a broader pattern: raw pulse segments are under pressure where near-term supply is comfortable, while processed products are better supported by steady consumer demand.
Fundamentals & Weather
Fundamentals in the moong and lentil space reflect a two-speed story. Spot physical markets in India are seeing buyer-friendly conditions because summer production and arrivals are currently adequate, giving wholesalers and dal mills leverage to negotiate lower prices. At the same time, the significant year-on-year decline in kharif moong acreage and slow start to moth planting point to potential tightening later in the season if weather does not compensate.
Weather is the key swing factor. India’s southwest monsoon remains below normal in many regions, with more than half of districts recently reporting rainfall deficits and official forecasts still flagging below-normal July rains that could constrain kharif output. For global lentils, Canadian Prairies entered July with generally adequate moisture after patchy spring rains, and recent government crop reports describe broadly favourable conditions for pulses, including lentils, though localized dryness remains a risk.
On the demand side, processed moong dal continues to enjoy regular offtake in domestic Indian markets, providing a floor to the value chain even as raw moong adjusts lower. Internationally, CIF price indications for green and red lentils from Canada and Russia into key destinations like India and Turkey were broadly unchanged over recent weeks, suggesting balanced nearby fundamentals and a market still waiting for clearer signals from weather and harvest progress.
Outlook & Trading Strategy
Over the next 4–8 weeks, the overriding theme is likely to be continued pressure on Indian raw moong and moth prices as long as summer arrivals remain strong, while processed dal and international lentil values trade sideways with a mild upward bias into late Q3 if monsoon deficits persist. The sharp shortfall in kharif pulse acreage compared with last year and continued rainfall uncertainty mean that any notable weather or crop scare could quickly translate into firmer prices, especially for higher-quality grades.
- For importers / buyers: Use current softness in Indian raw moong and the stability of Canadian/Chinese lentil offers to secure nearby coverage at today’s EUR levels. Consider staggering purchases into Q4 given weather risk, but avoid being under-covered if the monsoon outlook deteriorates further.
- For exporters / producers: Maintain disciplined offer levels for quality green and red lentils; current fundamentals do not warrant deep discounts. Monitor Indian monsoon and kharif acreage updates closely, as any further deterioration could unlock better pricing opportunities later in the season.
- For traders: The near term favours range-bound strategies: look for buying opportunities in physical or hedging markets when raw moong and allied pulses test local lows, with an eye to unwinding on weather-related rallies should acreage or yield concerns intensify.
3-Day Directional Price Indication (EUR)
- India, raw moong (UP physical): Slightly softer bias in EUR/mt as arrivals remain strong and mills buy hand-to-mouth.
- Canadian lentils FOB Ottawa (red & green): Sideways in EUR/kg; no significant short-term catalysts seen.
- Chinese small green lentils FOB Beijing: Broadly stable in EUR/kg with a mild downside risk if global demand stays subdued.