An easier tendency was seen in both the precious metals on the Mumbai bullion market last week. The absence of any relief in sales tax by the Maharashtra Government, lack of demand due to holi festival and year-end money stringency led to declining values.
Meanwhile, overseas prices eased from the recent recovery suggesting that the sentiment there continues to be bearish. A rise in prices can only be expected on encouraging fresh developments. It was indicated that the level of $335 per ounce for gold had attracted selling pressure from mines as well as investors. Now the range of $ 348-353 had been mentioned. Silver too has eased but is still good deal at higher than $ 5 per ounce limit. This has affected the sentiment here and values moved according to overseas advices. At the same time unconfirmed reports indicate that the next import-export policy would hold more scope for gold importers as some concessions for duty free import would be forthcoming.
In view of holi festival and the absence of marriages season the demand for both the precious metals has been at very low ebb. On the other hand stockists were keen on unloading stocks due to year-end and also to mitigate financial hardships.
More From This Section
Gold 22 carat fluctuated between Rs 4,430 and Rs 4,365. Official gold biscuits lost Rs 700 at Rs 55,300, ready silver .999 fineness resumed last week steady at Rs 7,425, a high of the week and on poor buying support gradually dropped to a low of Rs 7,280 to end at Rs 7345 per kg. Silver .916 fineness moved between Rs 7330 and Rs 7180. Tenderable silver lost Rs 80 at Rs 7350 per kg.
Grains: There was a further fall in wheat trading on the Mumbai grains market last week. Rising inflow of new crop wheat coupled with slack demand, mainly due to the year-end, caused prices of inferior wheat to drop below Rs 700 per quintal. Prices ruled steady for rice. In coarse saw a grains mixed sentiment. Among pulses gram ruled quiet on weak advices from producing centres. Overall the demand had been poor due to year-end. At the same time buyers refrained from entering into commitments at least till the month-end.
The declining trend persisted in wheat with new crop arrivals from Gujarat and Maharashtra. Traders were awaiting the lifting of ban on exports from the state to Madhya Pradesh. Wheat inferior meant for flour mills fetched Rs 675-700 on increased supplies. Trade sources say the prospects of wheat crop very bright with the start of marketing in North India. Heavy arrivals are expected.
Among pulses, gram was quiet at Rs 1,100-1,150 on advices from producing centres. Kabli gram was offered at Rs 1,650. Moong ruled steady between Rs 1,750 and Rs 1,900 but urad was quiet at Rs 1,325 - 1,350. Tur also ruled quiet at Rs 1,225-1,350 per quintal, steady for green and white peas at Rs 1,350 - 1,374 and Rs 1,125-1,200 respectively. Tur and masoor dal were steady at Rs 2,000 - 2,600 and Rs 1,600 - 1,800 respectively. All eyes had been on the inflow of rabi crop after the Holi festival, particularly wheat.
Oilseeds: A firm trend in castorseed futures and spot section was the main feature of trading on the Mumbai oilseeds market last week. In thin trading the rising trend was attributed to firmness in Ahmedabad contract, which at one time was offered at a Rs 15 discount, found buyers at a premium of Rs 3 over Mumbai June delivery.
The estimate of low castorseed crop, hardly one-half the record the previous year, promoted bulls to accumulate long position. Bulls here followed the pattern and the June contract crossed the Rs 1,200 mark.
Trading, however, had been poor as most operators are waiting for the supply situation to normalise after holi. On the other hand, in edible oils, supplies and demand matched with little changes in price levels.
However, with the start of the rapeseed crop season, prices of rapeseed refined has been on the decline.In edible oils, despite drop in the supplies of groundnut in Saurashtra region and rising prices, oil millers had been unable to increase prices of groundnut oil due to limited buying interest. At the same time marketing of new crop rapeseed adversely affected the sentiment and even demand for palmolein has been affected, causing prices to rule quiet.
Groundnut oil moved in a narrow range of Rs 338 and Rs. 341 per 10 kg.
Palmoleine dropped to Rs 275 but recovered to Rs 277 on improved advices from Malaysia. Arrivals of rapeseed refined oil adversely affected the sentiment with the prices dropping to Rs 271.