A quietly steady tendency was witnessed on the Mumbai bullion market last week. Due to the intervening holidays and not so encouraging overseas advices both precious metals moved within a narrow range to close with small losses and gains. With the `Shradha Paksha' the demand would drop and hence buyers were cautious in their commitments. The wait for liberalised import policy was also a restraining factor .
Overseas, gold was unable to cross the $325 per ounce level while silver had already crossed the $4.75 per ounce mark, heralding bullish trend. Silver had been in short supply worldwide and the demand has been on the rise. Under the circumstances silver prices would go up from the low levels attracting good support from industrial users. Gold has been quiet and had dropped to $321.50 per ounce over fears of a further gold sale by the central banks. The demand has been moderate. However, the level of $320 per ounce would attract good buying support, unless heavy offerings by banks is to follow.
On expectations of the new liberalisation policy, traders refrained from making larger commitments.
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Standard mint gold commenced last week at Rs 4,470, a previous close, and in early trading on Monday touched a high of Rs 4,475. However, on quiet overseas advices and lack of fresh demand, dropped to close at low of Rs 4,450 per 10 gms. Gold 22 carat fluctuated between Rs 4,140 and Rs 4,115.
Ready silver .999 fineness commenced last week at Rs 6,885 per kg and on better advices early eased to Rs 6,865, to close at the same level per kg. Silver .916 fineness was down from Rs 6,885 to Rs 6,870. Tenderable silver was down from Rs 6,885 to Rs 6,870 per kg. According to traders imports at this level was not at all profitable. Premium on special import licence had dropped to 11.50 per cent but the advantage was nullified by the rise in dollar value.
Oilseeds: Castorseeds futures moved narrowly over the last week in Mumbai. Spot advices were a shade better as the inflow from Gujarat was interrupted due to the recent rainfall. As far as castor oil was concerned, the export demand has been below normal, and the supplies of castorseed in Gujarat would rise to 8000-9000 bags a day.
Castorseed September lacked any activity, and no orders had been reported. However, on hopes of very good crop and discouraging export demand for castor oil, Ahmedabad contract had started on the decline. On the other hand, the December delivery here had been maintained around steady levels but there was limited activity. Consequently, once Ahmedabad contract was ruling Rs 30-35 higher than in Mumbai. Now, the Mumbai prices have been ruling higher around Rs 20. Bulls now have been shifting to the city market. In the absence of heavy short position, price fluctuations narrowed over the week. Castorseed December commenced last week 50 paise lower at Rs 1168.50, and in the absence of fresh support, the opening level became the high of the week. Ahmedabad weakness and the absence of fresh follow up support brought down the contract to the low of Rs 1159 to end at Rs 1165. Ready castorseed Madras small was finally placed at Rs 1186 per quintal, and castor oil commercial at Rs 267 per 10 kg.
In edible oils, activity was moderate but groundnut oil lacked good demand against increased selling pressure as new crop arrivals would start in a week. Groundnut oil receded from the last Saturday level of Rs 356 to Rs 346 per 10 kg.
On quiet Malaysian advices coupled with the pressure of imported arrivals, palmolein eased from Rs 256 to Rs 253 to finally close at Rs 254. Even at present, forward deals had been entertained at Rs 32-325 per 10 kg. Grains: A firm tendency in wheat proved to be the main feature of trading on the Mumbai grains market last week. Other cereals and pulses ruled steady.
In gram, heavy inflow of imported varieties adversely affected the sentiment and prices were quiet. The inflow of new crop moong and urad had little impact on the prices. The demand was good in wheat but rice, coarse grains and pulses lacked even normal trading activity.
The reflection of the increase in price of diesel by about Rs 1.80 per litre had been noticed on the prices of wheat. According to trade circles, transport operators, besides increasing freight charges, have reduced the quantum of goods thereby increasing the cost of transportation to the traders. Wheat prices were up Rs 20-25 per quintal over the week. Punjab inferior moist wheat was demanded higher at Rs 625-635 per quintal.
Better quality Ganganagar wheat was in demand at Rs 700-725 and MP-147 at Rs 700-750. Shihori pissi ruled between Rs 800-1200.
Activity in rice was at a low ebb. Despite reports of fall in rice output in Andhra Pradesh, there was no significant change in the prices here even in the case of SLO. Supplies had been poor due to lean months, and the hopes of a good new crop affected the demand. Stockists were keen on unloading stocks. SLO new fetched Rs 800-850 and old was at Rs 900-1050.
Gujarat-17 was in moderate demand at the steady level of Rs 1600-1700 and kolam at Rs 1700-2100. Basmati was offered between Rs 3800-4300.
In coarse grains, jowar was steady but bajra ruled quiet on increased inflow of new crop from Maharashtra which sold at Rs 500-525 and Gujarat at Rs 525-550. UP bold was in demand at Rs 700-1000. Jowar Sholapur was steady at Rs 650-900 and H-5 at Rs 525-550.
In view of limited supplies, maize prices were held steady at Rs 675-700. Among pulses, gram deshi ruled quiet at Rs 1330-1350 per quintal. Kabuli gram fetched Rs 1300-1550 and gram dal was offered at Rs 1650-1800. In limited activity, prices of moong, urad and peas ruled steady. Moong polished new ruled steady at Rs 1800-2200 and unpolished at Rs1600-1800.
Moong dal was demanded between Rs 1800-2200. Urad old was offered at Rs 875-900 and new at Rs 951-971. Urad dal met demand at Rs 1375-1550. Tur dal old was purchased at Rs 1000 and new at Rs 1100. Peas green ruled steady at Rs 1381-1391 and white at Rs 1125-1150.