After resuming on a better note, both the precious metals ruled quiet on the Mumbai bullion market last week. Despite the marriage season, both the precious metals were unable to forge ahead because of the lower advices from abroad.
The overseas traders were nervous for fresh purchases as far as the sale of the central bank gold is concerned. In view of the deficit many European countries would have to sell their gold to meet liabilities. This has hampered fresh buying.
Overseas, gold fluctuated in a narrow range of $340 and $343 per troy ounce. Thus upper levels had been dropped on feeble support despite low levels. In silver, too, prices declined from $4.86 to $ 4.69 per troy ounce. The confidence was lacking and traders awaited fresh developments. Oil prices had been on the rise with investment diverted to that sector. Prices would have to penetrate the upper or lower levels shortly.
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Activity on the local and upcountry markets indicated comparatively lower seasonal demand and investment buying. Stockists would not go for larger stocks due to uncertainty in foreign markets.
In fact, the turnover had been on the decline in the city while supplies remained comfortable with increased official and contraband supplies. Besides, the marriage season demand would gradually decline after a fortnight, hence stockists preferred to keep limited stocks on hand due to the monsoon slackness expected around June 15. Heavy supplies were able to match the seasonal demand with values fluctuating in the narrow range.
Standard mint gold commenced last week at Rs 4,795, against the previous close of Rs 4,790 in the absence of fresh buying. It fell a low of Rs 4,760 to end at Rs 4,405. Official gold biscuits dropped from the opening high level of Rs 56,100 to Rs 55,700.
Ready silver .999 fineness resumed last week Rs 30 higher at Rs 6,900 but dropped to a low of Rs 6,820 to end at Rs 6,875 per kg. Silver .916 fineness, resuming at a high of Rs 6,800 dropped to the low of Rs 6,720. Tenderable silver gained Rs 5 over the week at Rs 6,880 per kg.
Oilseeds: Listless condition marked trading in castorseed futures on the Mumbai oilseeds market last week.
The September contract saw only scattered trading in Masjid Bunder. Traders said even in Ahmedabad most trades had been taking place outside the official ring. With more and more restrictions, operators refrained any activity and thus the market has been dominated by a prominent spot-house who had hedged the contract against the spot buying.
Even on reports of castor oil despatches pending over one month, spot prices were unable to maintain higher levels, despite the fact that the inflow of castorseed in Gujarat had been on the decline.
Export market for castor oil has been uncertain as new Brazil crop would be fairly large. The marketing would start by August-end. On expectation of the crop foreign buyers were refrained from larger castor oil purchases, hoping for decline in prices.
In edible oils, with the fall in arrivals at lower rates, groundnut oil met with moderate gains over the week.
However, Rajkot advices were discouraging and palmoleine and sunflower imported oils reported steady at the low of Rs 355, recovering to Rs 361 per 10 kg. On moderate seasonal demand and the fall in supplies from Saurashtra palmoleine was Rs 281 to Rs 279. Sunflower imported oil eased from opening Rs 260 level to Rs 258 to end at Rs 259.
Grains: Lack of buying support due to holidays and an acute shortage of funds adversely hit turnovers as well as prices on the Mumbai grains market last week. Among pulses, arrival of imported stuff were good while traders were unable to get timely payments from upcountry centres. Suburban buyers were getting their needs directly from the producing centres, avoiding various expenses to bring the same on the Agricultural Producing Marketing centre at New Mumbai. The rising expenses at the complex had been a headache for the traders as well as consumers.
Rice was at a low ebb and prices ruled steady. In the absence of permits, no supplies were reported directly from Andhra Pradesh. On scattered arrivals from border areas rice was sold at Rs 900-1,100 per quintal. Gujarat-17 was steady at Rs 1,450-1,500 and Klaba Kolam at Rs 1,700-2,200. Basmati was firm at Rs 3,500-4,200.
Among pulses, gram was quiet on increased arrivals of imported Kabli and deshi gram with demand at a low ebb.
Gram deshi ruled at Rs 1,700-2,000. Urad white at Rs 1,800-2,00. Tur old fetched Rs 1,075-1,100 and new at Rs 1,1175-1,200.