Markets watch: Gold below Rs 32,000 mark on global cues, edible oils surge

From bullion to edible oils, pulses, sugar, gur and rice, here is a weekly wrap of how the prices of key commodities moved in the week ended May 18

Gold prices cracked below the Rs 32,000-mark by plunging Rs 450 to end at Rs 31,950 per 10 grams at the bullion market during the week taking weak cues from overseas markets and fall in demand from local jewellers at domestic spot market.

Silver followed suit and suffered a setback of Rs 200 at Rs 41,200 per kg due to reduced offtake by industrial units and coin makers.

Traders said, sentiment was downbeat largely in sync with a weak trend overseas, pressured by a firm US dollar amid surging US Treasury yields.

Globally, gold ended the week lower at USD 1,291.90 an ounce and silver at USD 16.43 an ounce in New York.

Besides, fading demand from local jewellers and retailers at current levels in the domestic spot market weighed on the gold prices.

In the national capital, gold of 99.9 per cent and 99.5 per cent purity started the week on a subdued note in line with a weak global trend and slipped below the Rs 32,000-mark to close at Rs 31,950 and Rs 31,850 per ten grams respectively, showing a sharp fall of Rs 450 each.

Sovereign, in restricted activity through the week, settled at previous level of Rs 24,800 per piece of eight grams.

In volatile movements on alternate bouts of buying or selling, silver ready also ended the week lower by Rs 200 to Rs 41,200 per kg and weekly-based delivery by Rs 345 to Rs 40,195 per kg.

Silver coins also dropped by Rs 1,000 to Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces. 

Edible oils extend gain on rising demand

Edible oils maintained an upward trend for yet another week at the wholesale oils and oilseeds market, on the back of rising demand from vanaspati millers and retailers.Castor oil in the non-edible section, also went up on increased offtake by the consuming industries.

0Marketmen said, pick-up in demand from vanaspati millers and retailers against restricted arrivals from producing belts, mainly led to the rise in edible oil prices.

Vegetable oils import rose by 3.5 per cent in April to 13.86 lakh tonnes, according to the industry data.

Imports of vegetable oils (edible oil and non-edible oil) stood at 13.39 lakh tonnes in April 2017, according to Solvent Extractors' Association of India (SEA).

In the national capital, sesame mill delivery and cotton seed mill delivery (Haryana) oils rose by Rs 200 each to Rs 9,200 and Rs 7,100 per quintal, respectively.

Mustard expeller (Dadri) oil also edged up by Rs 50 to Rs 7,700 per quintal.

Soya bean refined mill delivery (Indore) and soya bean degum (Kandla) oils too finished higher by Rs 50 each to Rs 7,700 and Rs 7,300 per quintal, respectively.

In the non-edible section, castor oil moved up by Rs 100 to Rs 7,200-7,300 per quintal, while linseed oil held steady at Rs 8,800 per quintal.

Rice basmati rises on high demand

Prices of rice basmati firmed up at the wholesale grains market during the week following pick up in demand against tight stocks position on fall in supplies from the producing regions.

However, wheat and a few other bold grains drifted lower due to reduced offtake against sufficient stocks position.

Marketmen said, upsurge in demand amid tight stocks position on fall in supplies from producing belts mainly pushed up rice basmati prices.

Reduced offtake by flour mills against ample stocks position on increased arrivals from producing belts kept pressure on wheat prices, they said.

Meanwhile, wheat procurement has risen by 16 per cent to 31.87 million tonnes (MT) so far in this marketing year and is all set to cross the government's target of 32 MT, according to the official data.

State-run Food Corporation of India (FCI) and state agencies had procured 27.57 MT in the same period of the 2017-18 marketing year (April-March).

Total wheat procurement stood at 30.82 MT in 2017-18 and government had fixed higher target in view of record output.

In the national capital, rice basmati common and Pusa-1121 variety rose by Rs 100 each to Rs 7,100-7,200 and Rs 6,400-6,500 per quintal, respectively on the back of day-to-day buying support.

On the other hand, wheat dara (for mills) declined by Rs 15 to Rs 1,745-1,750 per quintal. Atta chakki delivery followed suit and traded lower by a similar margin to Rs 1,750-1,755 per 90 kg.

Other bold grains like maize slipped to Rs 1,300-1,305 from the previous level of Rs 1,400-1,405 per quintal on muted demand from consuming industries. Bajra and barley also shed Rs 10 each to Rs 1,265-1,270 and Rs 1,470-1,480 per quintal, respectively. 

Select pulses recover on stockists' buying

The wholesale pulses market depicted a better trend during the week as prices of select pulses, led by masoor and kabuli gram, recovered by up to Rs 100 per quintal supported by stockists' buying.

Positive trends were also driven by uptick in demand from retailers and dal mills amid restricted supplies from the producing regions.

However, rajma chitra ended lower owing to a fall in demand against increased arrivals from the growing belts.

Traders said, increased offtake by stockists, supported by pick-up in demand from retailers and dal mills against tight stocks position on fall in arrivals from producing belts, mainly pushed up prices of select pulses.

Meanwhile, imports of pulses declined by nearly 1 million tonne (MT) in 2017-18 fiscal on record output, helping the country save Rs 9,775 crore in foreign exchange, the government said.

In the national capital, masoor small and bold prices were trading higher by Rs 50 each to Rs 3,500-3,700 and Rs 3,650-3,750 per quintal, respectively. Its dal local and best quality traded higher by Rs 100 each to Rs 3,800-4,200 and Rs 3,900-4,300 per quintal, respectively. Malka local and best followed suit and gained Rs 50 each to Rs 4,000-4,200 and Rs 4,100-4,400 per quintal, respectively.

Kabuli gram small variety also edged up by Rs 50 to Rs 4,050-5,050 per quintal.

Arhar and its dal dara, in-line with overall trend, also finished the week higher by Rs 50 and Rs 100 to Rs 4,100 and Rs 5,700-7,600 per quintal, respectively.

On the other hand, rajma chitra declined by Rs 100 to Rs 5,800-7,800 per quintal.

Gram, gram dal local and best quality moved in a narrow range on alternate bouts of buying or selling and pegged at previous levels of Rs 3,750-3,850, Rs 3,800-4,200 and Rs 4,200-4,300 per quintal, respectively.Select pulses recover on stockists' buying Pulses: The wholesale pulses market depicted a better trend during the week as prices of select pulses, led by masoor and kabuli gram, recovered by up to Rs 100 per quintal supported by stockists' buying.

Positive trends were also driven by uptick in demand from retailers and dal mills amid restricted supplies from the producing regions.

However, rajma chitra ended lower owing to a fall in demand against increased arrivals from the growing belts.

Traders said, increased offtake by stockists, supported by pick-up in demand from retailers and dal mills against tight stocks position on fall in arrivals from producing belts, mainly pushed up prices of select pulses.

Meanwhile, imports of pulses declined by nearly 1 million tonne (MT) in 2017-18 fiscal on record output, helping the country save Rs 9,775 crore in foreign exchange, the government said.

In the national capital, masoor small and bold prices were trading higher by Rs 50 each to Rs 3,500-3,700 and Rs 3,650-3,750 per quintal, respectively. Its dal local and best quality traded higher by Rs 100 each to Rs 3,800-4,200 and Rs 3,900-4,300 per quintal, respectively. Malka local and best followed suit and gained Rs 50 each to Rs 4,000-4,200 and Rs 4,100-4,400 per quintal, respectively.

Kabuli gram small variety also edged up by Rs 50 to Rs 4,050-5,050 per quintal.

Arhar and its dal dara, in-line with overall trend, also finished the week higher by Rs 50 and Rs 100 to Rs 4,100 and Rs 5,700-7,600 per quintal, respectively.

On the other hand, rajma chitra declined by Rs 100 to Rs 5,800-7,800 per quintal.

Gram, gram dal local and best quality moved in a narrow range on alternate bouts of buying or selling and pegged at previous levels of Rs 3,750-3,850, Rs 3,800-4,200 and Rs 4,200-4,300 per quintal, respectively.

Sugar adds more losses on ample stocks

The slide in sugar prices at the wholesale market continued unabated for yet another week in the national capital largely on soaring stocks following uninterrupted supplies from mills amid record production.

Ample supply led to a fall in sugar prices by up to Rs 70 per quintal. Moreover, reduced offtake by stockists and bulk consumers too kept pressure on the sweetener's prices.

Marketmen said, persistent fall in sugar prices was mostly due to steady inflow of supplies from millers coupled with record output in this marketing year against reduced offtake by bulk consumers such as ice-cream makers, confectioners and stockists despite summer season.

According to Indian Sugar Mills Association (ISMA), sugar production in the current season (ending September) is expected to grow sharply to hit all-time high of Rs 31.5 to 32 million tonnes.

Coming to price section, sugar ready M-30 and S-30 dropped by Rs 50 each to end the week at Rs 2,760-2,880 and Rs 2,750-2,870 per quintal, respectively.

Likewise, mill delivery M-30 and S-30 prices slipped by Rs 60 each to conclude the week at Rs 2,550-2,680 and Rs 2,540-2,670 per quintal, respectively.

In mill gate section, Sugar asmoli prices dipped by Rs 70 during the week to finish at Rs 2,650, followed by Budhana and Sakoti sliding by Rs 65 each to Rs 2,590 and Rs 2,570 per quintal, respectively.

Sugar Mawana, Kinnoni and Khatuli plunged by Rs 60 each to Rs 2,590, Rs 2,680 and Rs 2,675, respectively. On the other hand, Dorala and Dhampur slipped by Rs 55 each to end at Rs 2,590 and Rs 2,555 per quintal, respectively.

Prices of Thanabhavan, Dhanora, Simbholi, Modinagar and Shamli also receded by Rs 45 each to Rs 2,600, Rs 2,670, Rs 2,675, Rs 2,590 and Rs 2,580 and Malakpur moved down by Rs 40 to Rs 2,585 per quintal, respectively.

Gur prices decline on sluggish demand

A subdued trend was observed at the wholesale gur (jaggery) market in the national capital during the week with prices falling by Rs 100 per quintal due to sluggish demand from stockists as well as retailers amid increased supplies.

Muzaffarnagar and Muradnagar gur markets also displayed a weak trend on muted demand amid ample stock position and prices fell by up to Rs 300 per quintal.

Marketmen said, low demand from stockists and retailers due to off-season amid increased arrivals from manufacturing areas, mainly led to a slide in gur prices.

In Delhi, gur Chakku, Dhayya, Pedi and Shakkar prices dropped by Rs 100 each to conclude the week at Rs 2,900-3,000, Rs 3,100-3,200, Rs 2,900-3,000 and Rs 3,200-3,300 per quintal, respectively.

At Muzaffarnagar, gur Chakku tumbled by Rs 300 to finish the week at Rs 2,300-2,500, followed by Khurpa which plummeted by Rs 250 to Rs 2,250-2,300 per quintal.

Gur Laddoo prices also ended lower by Rs 100 to Rs 2,500-2,600 per quintal.

Meanwhile, gur Raskat prices ruled flat throughout the week at Rs 2,100-2,150 per quintal on some support from beer makers.

Coming to Muradnagar, gur Dhayya prices recorded a steep fall of Rs 250 to end the week at Rs 2,550-2,600, while gur Pedi slipped by Rs 200 to end the week at Rs 2,500-2,550 per quintal.

Dry fruit prices decline on muted demand

Dry fruit prices, led by almond and walnut, drifted lower at the wholesale market during the week under review due to subdued demand at prevailing levels against adequate stocks in the market.

Increased offerings by stockists coupled with increased arrivals from overseas markets also weighed on the prices of select dry fruits.

Marketmen said sentiment weakened largely on fall in demand due to off-season, leading to a drop in prices.

Almond California drifted by Rs 200 to conclude at Rs 18,600-18,800 per 40 kgs and its kernel also eased by Rs 10 to finish at Rs 650-660 per kg.

Almond (gurbandi and girdhi) prices declined by Rs 100 each to finish at Rs 12,000-12,500 and Rs 5,000-5,200 per 40 kgs, respectively.

Chilgoza (roasted) traded lower at Rs 2,300-2,400 against previous closing of Rs 2,400-2,500 per kg.

Cashew kernel (No 180, 210, 240 and 230) prices fell by Rs 5 each to settle at Rs 1,085-1,090, Rs 980-990, Rs 880-890 and Rs 760-780 per kg, respectively.

Cashew kernel broken (2, 4 and 8 pieces) also eased by Rs 5 each to close at Rs 700-780, Rs 630-730 and Rs 560-665 per kg, respectively.

Coconut powder fell by Rs 100 to finish at Rs 5,300-6,000 per quintal.

Kishmish Indian yellow and green traded lower at Rs 6,800-7,000 and Rs 8,500-12,000 as compared to previous week's closing of Rs 6,900-7,100 and Rs 8,600-12,100 per 40 kgs.

Pistachio hairati and peshawari prices fell Rs 5 each to end at Rs 1,475-1,545 and Rs 1,625-1,645 per kg, respectively.

In line with a general weak trend, walnut and its kernel prices also drifted lower at Rs 240-330 and Rs 510-910 instead of Rs 260-350 and Rs 530-930 per kg previously.

Spice prices dip on slowdown in buying, adequate stocks Kirana 

Select spices depicted a weak trend at the wholesale spices market in the national capital during the week on increased selling by stockists against slowdown in buying activity at prevailing higher levels and closed with widespread losses.

Sentiments turned weak owing to adequate stocks position following increased arrivals from producing belts.

Marketmen said reduced offtake by retailers as well as exporters following fall in demand at existing levels, mainly weighed on prices.

Black pepper prices declined by Rs 10 to conclude at Rs 360-520 per kg.

Cardamom brown-Jhundiwali and Kanchicut prices declined by Rs 10 each to conclude at Rs 580-590 and Rs 640-940 per kg, respectively.

Cardamom small varieties such as chitridar, colour robin, bold and extra bold fell up to Rs 10 to settle at Rs 915-1,015, Rs 840-860, Rs 870-890 and Rs 940-960 per kg, respectively.

Coriander and dry ginger declined up to Rs 200 to conclude at Rs 5,800-12,000 and Rs 14,800-18,800 per quintal, respectively.

Kalaunji prices drifted lower at Rs 9,200-9,700 against last week's closing of Rs 9,500-10,000 per quintal.

Mace-red and nutmeg prices closed lower at Rs 840-1,070 and Rs 430-440 from previous closing level of Rs 850-1,080 and Rs 440-450 per kg, respectively.

Poppyseed (Turkey and China) prices fell up to Rs 10 to settle at Rs 340 and Rs 345 per kg, respectively.

Red chilli and turmeric declined Rs 200 each to conclude at Rs 6,000-15,000 and Rs 8,600-11,400 per quintal, respectively.

Jeera common and jeera best quality prices also fell by Rs 100 each to end at Rs 16,500-16,600 and Rs 18,500-19,000 per quintal, respectively.