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Bullion Divergent, Gnut Oil Eases, Sugar Subdued

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BSCAL
Last Updated : Mar 16 1998 | 12:00 AM IST

Prices showed a divergent trend on the Mumbai bullion market during the week ended March 14 as gold recovered moderately and silver remained weak. The market remained closed on Friday, March 13 on account of the Holi festival .

Standard gold started better at Rs 3,990 and rose further to Rs 4,010 by midweek on good local buying coupled with firm London advices. Later, due to fresh arrivals, prices fell to close at Rs 3,985, still showing a moderate gain of Rs 5 over the last weeks close of Rs 3,980. 22-carat gold also closed higher at Rs 3,685 as against the last weeks mark of Rs 3,680. However, ten-tola gold bar of .999 purity held steady at the previous weeks level of Rs 46,800.

Ready silver of .999 purity, after a weak start at Rs 8,625, fell further to Rs 8,575 by Thursday on fresh arrivals. Later, due to good industrial buying and restricted supply, recovered to close at Rs 8,615, still showing a fall of Rs 25 from the last weeks level of Rs 8,640. Raw silver .916 at Rs 8515 and tenderable silver at Rs 8,620 ended weak from the last weeks close of Rs 8,530 and Rs 8,645 respectively

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Oils & oilseeds: Prices turned weak on the oilseeds market during the week on lack of buying interest.

In the edible section, groundnut oil resumed steady at Rs 376, but eased on lack of local buying coupled with weak Gujarat advices and closed at Rs 370, showing a fall of Rs 6 over the last weeks close of Rs 376.

Groundnut bold fell by Rs 20 to Rs 1,940 from Rs 1,960. Palm oil however, held steady at Rs 323 on stray support.

In the non-edible section, linseed oil resumed better at Rs 330 and after moving in a narrow range, closed at the same level, showing a gain of Rs 5 over the previous close of Rs 325.

Linseed bold showed no change at Rs 1,300. Castor oil commercial softened by one rupee at Rs 266 from Rs 267 on poor industrial buying. Castorseed Madras declined by Rs 5 at Rs 1,181 from Rs 1,186.

In the futures market, castorseed June contract started weak at Rs 1,228.50 and later rallied to Rs 1,232, only to react again on fresh stockists offerings and closed at the opening mark of Rs 1,228.50, showing a fall of Rs 2.50 over the last weeks mark of Rs 1,231.

Metals: Tin ingot and solder prices plunged on the non-ferrous metal market largely on increased ready stocks in the market against poor offtake.

Elsewhere , prices of other base metals continued to move in a narrow range on some support and closed with hardly any change.

The volume of business was moderate.

Grains: Wheat dara and chakki atta prices shed some grounds on the grains and pulses market due to reduced demand.

Generally, the market remained steady in the absence of any worthwhile activity.

The volume of business also dropped to some extent. Wheat dara prices dropped by Rs to 560-570 per quintal due to slackened demand from flour mills.

Chakki atta quoted Rs 10 down at Rs 580-615 per 900 kgs bag following drop in wheat dara prices.

Pepper: Black pepper prices declined on the international commodity exchange for pepper here last week on slack purchase by domestic traders and restricted export enquiries, dealers said.

Demand from internal buyers was low and export enquiries were less this week, they said.

During the week, July contracts opened at Rs 19,800 a quintal and closed at the same level.

June contracts closed lower at Rs 19,850 against Rs 20,200 last week, while may futures ended up at Rs 21,050 against Rs 20,400. April futures also ended at Rs 21,050 against Rs 20,650 and March closed out at Rs 19,800 against Rs 20,650.

Rubber: Natural rubber prices increased marginally on better stock procurement by state-owned agencies amidst restricted arrivals on the primary market here last week, dealers said.

Purchases by agencies like Rubco and Rubbermark was better this week and low arrivals led to a better price trend, they said.

During the week, RSS-Four prices increased to Rs 26.75 a kg from Rs 26.25 last week. At Kochi, the other major trading centre, the prices closed at Rs 26.50 a kg.

Sugar: Trading displayed a sluggish trend and prices mostly remained subdued at the local sugar and khandsari market during the week ended March 14.

Prices of sugar mostly remained stagnant or subdued because of weak demand from stockists and upcountry agents due to bad weather during the week.

Market trend showed that there were no buyers at high rates and mill delivery rates also slipped at weekend.

Prices of sugar did not show much activity despite Holi festival demand during midweek.

Sugar M-30 declined by Rs 5 to Rs 15 per quintal at Rs 1425/1465. Meanwhile, S-30 slipped by Rs 5 per quintal at higher level at Rs 1400/1425.

Khandsari bold lost Rs 15 at higher level at Rs 1350/1375 and dust was down by Rs 20 at higher level at Rs 1275/1300 per quintal compared to last weeks price level.

Gur, however, remained stagnant as demand was met by mounted inventories.

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First Published: Mar 16 1998 | 12:00 AM IST

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