Stagnation in Moong Beans Will Persist

Mintec Global
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Market Overview

The current state of the mung bean market presents a complex scenario for exporters. With summer moong arrivals from various states and a significant slowdown in pulse sales over the past 15 days, understanding the market movements is crucial. This analysis provides insights into the current trends, pricing fluctuations, and prospects for moong beans.

Current Market Scenario

The market for moong beans has experienced increased pressure from new arrivals across several states, including Uttar Pradesh, Bihar, West Bengal, Orissa, and Madhya Pradesh. This influx has led to panic selling among stockists, resulting in a price drop over the last fortnight. Despite the reduced prices, pulse mills are beginning to capitalise on the situation.

Different regions are seeing varied pricing for moong beans based on quality and conditioning. For instance, the amount of moong from Madhya Pradesh has decreased. Meanwhile, moong from UP, West Bengal, Jharkhand, and Orissa is trading between nominally, and Rajasthan’s old moong prices have dropped, with some high-quality batches quoted nominally.

Historical Context and Syndicate Influence

Last October, traders from Karnataka significantly influenced the market by purchasing large quantities of moong from Rajasthan, creating an artificial boom through syndicate formations. This activity disrupted the seasonal price trends and has had lasting effects on the market. Currently, the influx of new moong from various states, coupled with a lack of additional consumption for weddings and other events, suggests a potential further decline based on quality.

Production and Seasonal Impact

Moong beans are produced in both the Kharif and Rabi seasons. Last year, production was 3.8 million metric tons, while this year, it is estimated at 4.6 million metric tons. Over the next two months, state-wise crop pressures will persist, with no significant government purchases at the minimum support price, as the government is currently focused on wheat procurement.

Madhya Pradesh, in particular, is experiencing high sowing rates, increasing the pressure on moong supplies. The substantial arrivals in recent days indicate that there is little scope for a price rise in the immediate future. Although dal mills have limited stocks, the sale of washed and peeled dal remains weak but shows signs of improvement. This situation suggests that traders should avoid overly bearish trading strategies at this time.

In conclusion, the mung bean market is characterised by increased supply pressures and fluctuating prices. Exporters should carefully monitor these trends and consider current price points when purchasing. The market is unlikely to see significant price rises in the near term due to high production estimates and ongoing government wheat procurement. However, strategic buying at current prices may present opportunities as market conditions stabilise.