The demand and supply curves of both the precious metals moved in the opposite directions in the bullion market for the week ended July 11. Silver .999 and raw declined moderately by Rs 90 each to Rs 6390 and Rs 6270 per kg on account of weak overseas advices and better inflows of the white metal from abroad.
Standard mint gold and 22-carat firmed up by Rs 120 and Rs 115 to Rs 4,470 and Rs 4,135 per 10 gm respectively on improvement in prices at the London market and increase in the special import licence (SIL) premium from 9.70 last week to 11.25 on Friday.
The 10 tola gold rose by Rs 1400 per biscuit on better buying support from investors and jewellery industry. Gold moved from $313.60 per ounce earlier this week to $320.60 per ounce on Friday closing at the London market. The yellow metal reached its 12 -year -low in the London market and five -year -low in Mumbai consequent to the sale of 167 tonnes of Reserve Bank of Australia. Despite the rise, dealers the world over are keeping their fingers crossed as they anticipate further sales by central banks in Europe.
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The bullion market was closed on July 12 due to Mumbai bandh. The week began on a negative note with both the precious metals declining on lower international advices and better inflows of yellow and white metals from the overseas markets.
On Tuesday, silver prices crashed heavily due to the downtrend in the London market. The white metal slumped by 20 cents to &4.26. Gold eased slightly on slack demand from local buyers and operators. Both the precious metals recovered marginally on renewed demand from operators and better overseas advices on Wednesday.
An upbeat mood prevailed on Thursday as both the precious metals shot up on heavy demand for SIL from the importers and firming up of prices. On Friday, gold and silver prices further improved on firm international markets and good local buyers.
Oilseeds weekly: Castorseed futures were unable to make much headway on the Mumbai oilseeds market last week. However, spot prices edged up on hopes that the castor oil futures trading would have international reckoning following permission to start castor oil and cotton futures. Due to rainfall in Gujarat, receipts of castor seed had been affected.
In edible oils, groundnut oil recovered on restricted supplies and moderate demand. Quality groundnut oil was in short supply. Palmolein and sunflower imported oils were quiet. Malaysian advices were discouraging and hence imported were keen on liquidating stocks.
Castor oil commercial gained Rs 3 at Rs 254 per 10 kg, advices from Saurashtra and Rajkot were encouraging. Supplies have been interrupted by the rains. Imported sunflower oil was down from Rs 260 to Rs 255. In view of the oncoming festival season in Shravan, the demand for edible oils is likely to go up.
Grains weekly: A firm trend in inferior wheat and recovery in gram highlighted trading on the Mumbai grain market last week. In view of out-of-parity prices, the inflow of inferior wheat and gram declined. However, prices ruled steady for other superior varieties of wheat and also for rice and coarse grain.
Urad held higher levels fixed by the traders last week at Rs 1,000 per quintal. in view of the good progress of the monsoon, the sentiment was steady.
The accumulation of imported stock was, however, a headache in the trade circles. the financial situation has also not improved. Traders are looking forward to the start of good demand in the Shravan festival season.
Prices ruled steady in rice and coarse grains. SLO new was offered at Rs 850-875 and old at Rs 900-950. Gujarat-17 was offered at Rs 1,600-1,700 and kolam at Rs 1700-2100, basmati was in demand between Rs 3,800 and Rs 4,300.
Among pulses, gram desi, on limited arrivals due to low prices, recovered to Rs 1,300-1,325 and kabli at Rs 1,325-1,600. Gram dal was traded between Rs 1,600 and Rs 1,700.
Urad was steady at Rs 1,000 and urad dal at Rs 1,300-1,600. Moong ruled at Rs 1,325-1,400 and white at Rs 1,125. Tur old was steady at Rs 950-975 and new at Rs 1,050-1,075. Tur dal was traded between Rs 1,800-2,000 per quintal.
The demand was at very low ebb and the shortage of funds persisted as up-country buyers were delaying outstanding payments.
Consequently, with no fresh demand from up-country centers even local traders who are indulging in speculative activities, incurred losses.
Markets closed: The commodity markets including oil seeds, cotton, pepper and sugar were affected due to Mumbai bandh called by the RPI and opposition parties on Saturday.
According to market sources, although they were officially open, no business was transacted due to very poor attendance following disruption of train services. The bullion market opened as usual at 12.30 pm .