A modest rise in silver was the main feature of trading on the Mumbai bullion market last week. This was attributed to restricted supplies and modest recovery in silver prices abroad. On the other hand, gold moved narrowly due to recent heavy inflow and the end of the seasonal demand. The sentiment had been uncertain depending on the pattern of prices abroad.
Overseas reports reveal recent spurt in prices of platinum and palladium because of the delay in Russian white metal supplies, resulting in drop in prices of both the white and yellow precious metals.
However, silver after touching a recent low of $4.72 recovered over the week to $4.80 per troy ounce. Gold was subdued around $340 per troy ounce level. Reports of likely sale of Belgium coins had a bearish impact on the price level. In case the sales materialise, gold prices would drop even below $340 level. Besides, the demand from India is expected to be poor for next two months. The demand would start only around the festival season.
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The fear of gold imports by banks and financial institute along with the recent heavy arrivals by seas affected the sentiment. The supply position for gold was comfortable but paucity persisted in silver, hence values recovered sharply.
Standard mint gold commenced last week at Rs 4,640, a previous close and in restricted trading activity touched a high of Rs 4,650 last week. With the quiet overseas advices it eased to close at the low Rs 4,605. Gold 22 carat varied between Rs 4,300 and Rs 4,260. Official gold biscuits lost Rs 450 at Rs 53,850.
Ready silver. 999 fineness came for trading last week Rs 20 higher at Rs 6,730 and receded on Monday to the low of Rs 6,725 on lack of good demand. Encouraging overseas advices and moderate demand lifted the value to touch a high of Rs 6,770 from a low of Rs 6,700 to end at Rs 6760. Tenderable silver was up Rs 50 at Rs 6,765.
Oilseeds: Castorseed futures ruled quiet after steady start on the Mumbai oilseeds market last week. With the start of monsoon which is expected to be favourable, the sentiment changed as bulls preferred to take into account prospects of the next oilseeds crop in general and castorseeds in particular.
The inflow in Gujarat was still higher around 22,000 bags a day which arrested the rising trend. Profit-taking at bulges caused inroads into the prices. However, the Ahmedabad market still under the grip of bulls ruled higher by around Rs 28-29 over the September contract. In edible oils, groundnut oil moved narrowly and lacked strength in view of quiet Rajkot advices. On quiet Malaysian palm oil advices, palmoleine ruled quiet. In view of sluggish demand and paucity of funds, the sentiment was subdued.
On the export front recent commitments with China and Europe had little significance as quantity had been limited. Exporters were unable to put through more export commitments for castor oil. They feared that prices would drop in international market, once Brazilian crop would arrive in a month. With the pressure of arrivals, it was difficult to push up spot prices and hence bulls here were wary of supporting the contact.
In edible oils, activity was at a low ebb. The advance of monsoon into Gujarat had arrested further price rise. The pressure of imported supplies restrained any price rise. In view of quiet Malaysian palm oil advices, palmoleine also ruled in a narrow range of Rs 267 and Rs 265 per 10 kg. Rajkot groundnut oil advices were quiet and groundnut oil ruled at around Rs 356.
Grains: The Mumbai grains market was devoid of good activity and acute paucity of funds last week. The sharp fall in prices of imported pulses like urad from Rs 1,500 to barely Rs 950 at present created various problems for upcountry buyers who have been delaying outstanding payments, forcing local traders to dispose off imported pulses at throw-away prices.
Poor upcountry demand in imported pulses resulted in heavy glut in stocks. In cereals, activity was limited. With the onset of timely monsoon, sellers were keen on reducing stocks on fears of fall in the quality.
Wheat and rice ruled steady. In coarse grains, bajra new rabi crop from Gujarat had started coming. On the whole the demand was very poor. Wheat arrivals from Punjab were good but it consisted of mainly inferior and moist varieties, placed steady at Rs 525-600 per quintal.
Activity in rice was at a low ebb. New crop SLo from Andhra Pradesh was priced at Rs 800-825 and old at Rs 900-950. Gujarat 17 ruled steady at Rs 1,600-1,700 and Surti Kolam at Rs 1,700-2,100. Basmati was sold between Rs 3,800 and Rs 4,300 per quintal.
Among pulses, urad was offered lower at Rs 900-950 on account of heavy accumulation of stocks and poor upcountry demand. Gram deshi ruled steady at Rs 1,225-1250 and gram dal at Rs. 1,500-1,700. Kabli gram fetched Rs 1,250-1,450. Moong was in short supplies and ruled steady at Rs 1,400-1,700 and moong dal at Rs 2000-2,300. Urad dal was offered at Rs 1,500-1,600.
Tur old ruled quiet at Rs 900-975 and new at Rs 1,050. Tur dal, however, was placed at Rs 1,900-2,300. Masoor fetched Rs 1,400-1,500 and masoor dal at Rs 1,450-1,700 per quintal.