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Bullion Slips Further, Castorseed Fluctuates, Wheat Firm

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BSCAL
Last Updated : Jan 13 1997 | 12:00 AM IST

The declining trend on the Mumbai bullion market was further accentuated last week. The fall was attributed to the slip in prices abroad and the lack of good demand.

However, demand for gold jewellery from South was fairly decent, but with increase in margins, the inflows rose too.

During last week, overseas gold touched a low of $353.50 per ounce.

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Compared with gold, silver had maintained the level at the current rate of $4.66 per ounce.

In domestic market, standard mint gold commenced last week at a high of Rs 4,920, against the previous close of Rs 4,950, and on weaker overseas advices, it drifted to a low of Rs 4,800. However, on better New York advices, the prices recovered to end the week at Rs 4865 per 10 gms.

Gold 22 carat fluctuated between Rs 4,550 and Rs 4,440, while gold official biscuits lost Rs 950 at Rs 50,900 over the last week.

Ready silver.999 fineness was traded last week at Rs 6,800, Rs 10 higher than the previous close and rose to the high of Rs 6,810 on the same day.

But later, the prices dropped to Rs 6,730 to close the week at Rs 6,800 per kg.

Grains: A firm tendency in wheat was the highlight of trading on the Mumbai grains market last week.

The week saw the supplies affected in the open market as Food Corporation of India did not oblige trade.

Besides, ban on rice by the Madhya Pradesh adversely affected new crop arrivals. As a result, rice prices shot up by Rs 100-150 per quintal as per quality.

Wheat prices zoomed up by Rs 50. New fresh supplies without infection had been stopped. Therefore, in the coming days, trading in wheat would be hit considerably.

Punjab mill polished was on offer at Rs 825-840 per quintal, while Ganganagar variety fetched Rs 975-1,000, MP 147 Rs 1,200-1,400 and Shihori pissi Rs 1,400-2,000.

Even at these rates, it was difficult to get good supplies.

Punjab parmal of FCI two-year old with infection ruled at Rs 675-725, while Punjab parmal was tradd at Rs 800-875. Gujarat 17 was transacted at 1,600-1,800, Kolaba Kolam at Rs 2,200-2,400 and basmati at Rs 2,600-Rs 3,500. In coarse grains, jowar ruled at Rs 425-1,000, bajra between Rs 525 and 1,000 and maize at Rs 475-625 per quintal.

Oilseeds: On the the Mumbai oilseeds market, castorseed witnessed wide fluctuations last week.

In edible oils, the inflow of groundnut in Saurashtra would graduallydrop.

Besides, the National Dairy Development Board had entered the Karnataka market alongwith purchases in Saurashtra. Moreover, a pronounced decline in stocks palmolein prices rose modestly.

Castorseed march contract commenced last week at Rs 1186.50, against the previous close of Rs 1188.

And in the absence of fresh support couple with profit taking prices started declining after opening high.

Thereafter, the contract dropped to a low of Rs 1167.50, at which level the bull syndicate provided support, lifting the prices to close at Rs 1177.50.

In the spot section, castorseed MAdras small hovered around Rs 554.50.

Oil commercial started the week a rupee lower.

With the increase in arrivals pressure from Gujarat to more than 30,000 bags a day, it was difficult for the prices to remain steady.

In edible oils, groundnut oil started the week at Rs 345.

On moderate demand coupled with fall in supplies below 70 to 75 tonnes a day prices moved up to Rs 353 per 10 kg. However, Rajkot tin ruled at Rs 524 at the end of the week.

Advices from the south were quiet bu t with the entry of the National Dairy Development Board (NDDB) the sentiment changed and the declining trend was arrested.

In the case of Palmolein, stocks dwindled and fresh supplies attracted good upcountry demand. As a result prices moved up to Rs 289 from Rs 281 per 10 kg to end at Rs 288 per 10 kg.

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First Published: Jan 13 1997 | 12:00 AM IST

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