Speculators Lose Grip, Market Stabilizes in India

After weeks of speculative pressure, the urad market in India is showing signs of recovery. Despite limited stock availability in producer and distributor markets, speculators had driven prices sharply lower. Over the past 10 days, urad prices in India dropped by USD 0,054–0,06 per kg, unsettling traders and disrupting the market.

However, the tide is turning. Increased buying activity at lower levels has helped stabilize the market. Prices dipped an additional USD 0,006 per kg before rebounding, and traders are optimistic about further improvement in the coming weeks.

Recent Price Movements Reflect Recovery

The price of Urad SQ, which stood at USD 1,08 per kg just two weeks ago, dropped to USD 1,008 per kg before stabilizing. Similarly, FAQ quality urad fell from USD 0,972 per kg to USD 0,936 per kg, but it has since recovered to USD 0,954 per kg.

Traders believe that the rebound is driven by speculators covering their positions at lower price levels and the limited availability of stock in India’s markets.

Supply Constraints Keep Indian Prices Firm

India will not see significant urad crop arrivals until February-March, when the colorful urad harvest begins. The green-colored urad crop will follow in May. With minimal stock in the pipeline, supply constraints are expected to persist.

Speculators had temporarily weakened the market by selling small quantities at lower prices, but the absence of sufficient stock has limited their influence. These factors are keeping prices firm in India.

For traders, the current stability offers a chance to strategize before the next harvest arrives. Indian farmers may also benefit from stronger prices as supply tightens until new crops are available.

Conclusion

The Indian urad market is finally stabilizing after weeks of speculative-driven declines. With limited stock and no significant crop arrivals expected until February-March, prices are likely to remain firm. As speculative activity fades, both traders and farmers can look forward to a more balanced market in the near term.





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