Listless conditions marked trading on the Mumbai bullion market.
With the off-season, the demand dropped, while on quiet overseas advices values drifted further and gold fell below Rs 4,600 last week. This was the lowest rate since last three years, thanks to the weak overseas trend.
The announcement that 113 tonnes of Belgian coins would not be sold before 2000, had little impact on price levels.
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Overseas traders said firmness of dollar adversely affected the gold demand.
Consequently, prices moved in a narrow range but recovered from the recent low of $337.50 per troy ounce.
However, at $340 sellers were active. Compared to gold, silver has been well maintained abroad. After touching a low of $4.72 prices recovered to $4.79 per ounce. Industrial demand in silver was good at lower rates and prices have been well maintained.
Standard mint gold commenced at Rs 4,600 against the previous close of Rs
4,605 and in early deals recovered to a high of Rs 4605 per 10 grams.
Subdued demand coupled with overseas advices caused a fall and values touched a low of Rs 4,580 to close at the same level. Gold 22-carat fluctuated between Rs 4,260 and Rs 4,210. Gold official biscuits dropped from Rs 53,850 to Rs 53,200. Ready silver .999 fineness opened at Rs 6,755, against the previous close of Rs 6760.
Oilseeds: An easy trend in castorseed futures was the highlight in oilseeds market last week. In the absence of bull support the contract suffered a mild setback to touch recent low levels, despite higher Ahmedabad advices. Sources said a prominent local bull had accumulated long position in Ahmedabad leading to prices ruling around Rs 30 higher than in Mumbai.
Firmness in Ahmedabad resulted in bears rushing to cover short position at every decline. There was, however, little follow-up support.
Thus with the bear covering the contract drifted further lower .
In spot section both castorseed and oil ruled steady in limited activity
In castorseeds June, the September contract commenced at Rs 1,132, against the previous close of Rs 1,135. In early deals, it touched the high of Rs 1,133.50. But, with prices declining at Ahmedabadand absence of fresh support, the contract drifted to a low of Rs 1,118.50 to be finally placed at Rs 1,119.50.
Ready prices moved narrowly with castorseed Madras small ruling steady at Rs 1,094 per quintal and castoroil commercial at Rs 248 per 10 kg.
In view of the good monsoon and limited discouraging export inquiries for castor oil, fresh buying support was lacking.
In edible oils demand was limited due to large amount of imported oils available at lower rates
Ready groundnut oil started at Rs 355 and ruled at Rs 352 per 10 kg. Palmoleine was traded higher at Rs 370, but on pressure of supplies along with limited buying support, declined to Rs 265.
Grains: An easy trend prevailed in pulses at the Mumbai grains market last week.
The demand was at a low ebb while acute funds shortage continued to have a bearish impact on prices Heavy accumulation of imported pulses and poor demand caused further decline in prices of urad, moog and to a smaller extent in gram.
In cereals, wheat ruled quit despite limited inflow as prices were disparate with upcountry producing centers.
Coarse grains were steady with limited supplies and poor demand. Due to acute paucity of funds and delayed outstandings upcountry payments traders were forces to dispose off stocks with price cuts at the wholesale level.
However, sources said the consumers have not benefited from this as prices at the retail level did not decline. Moist and inferior Punjab wheat was sold at Rs 525-575 per quintal.
Ganganagar variety ruled at Rs 675-700 and M P-147 at Rs 650-750. Shihori Pissi ruled easy at Rs 700-1,100. The lower prices had resulted in a lower supply.
Trading in rice was also at low levels with prices holding steady. In the absence of fresh sale of inferior old rice by FCI, supplies had to be diverted from Karnataka. SLO ruled at Rs 800-850 and old at Rs 900-950. Gujarat-700 was steady at Rs 1,400-1,700 and Surti Kolam at Rs 1,700-1,100
Basmati was sold at Rs 3,800-4,300. In coarse grains activity was low and prices steady. Jowar Sholapur fetched Rs 650-900. H-5 was at Rs 525-575 and H-9 at Rs 600-625. Bajra Gujarat small fetched Rs 580-650 and UP bold at Rs 700-1,000.
Among pulses gram deshi was offered at Rs 1,200-1,250 and Kabli at Rs 1,200-1,350.
Gram dal was steady at Rs 1,500-1,700 and tur new at Rs 1,025-1,0250.
Tur dal eased to Rs 1,700-2,000. Urad, on heavy stocks of 5 lakh bags of 50 kg each, receded to Rs 875-925 and urad dal at Rs 1,500-1,600.
Peas green was offered lower at Rs 1,375-1,400 and white at Rs 1,100. Traders were worried about the delayed upcountry payments.
Thus there were no fresh buying by upcountry centres.
Acute shortage of funds had affected turnover resulting in accumulation of imported pulses.