A mixed trend was noticed on the Mumbai bullion market last week.
Silver flared up to cross the Rs 7,400 mark, while gold dropped below Rs 4,800 on weaker overseas advices.
Silver firmed up as prices abroad went up sharply once again, crossing the $5 mark at $5.15 per ounce. Gold dropped below the $340 per ounce mark to $337 at one time, recovered sharply to $345, but declined later to around $342.
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Besides firm overseas advices advices, the special premia also went up to Rs 13.75 per cent. All these factors were responsible for poor inflow of silver as margins shrank considerably. On the other hand, supplies of both official and contraband gold remained unhindered. Weaker overseas advices affected demand for gold to a great extent.
Even the demand for marriage season in the city was limited as both supplies and demand shifted out of the state.
Standard mint gold commenced last week Rs 5 higher at Rs 4,810. With London gold dropping to $337 per ounce, sellers became very active.
But since the demand was poor, the values gradually dropped to the low of Rs 4,775 to end at Rs 4,780. Gold 22 carat fluctuated between Rs 4,450 and Rs 4,400, while gold official biscuits lost Rs 300 at Rs 55,900.
Ready silver .999 fineness opened last weak at Rs 7,075, against the previous close of Rs 7,090 per kg.
However, prices shot up later to end the week at Rs 7445.
Oilseeds: Prices in castorseeds March delivery at Ahmedabad were seen recovering. At one time, the Ahmedabad castorseed March contract was offered Rs 30 lower than in the city.
The weakness in the Ahmedabad market was mainly due to heavy arrivals of about 45,000 bags a day in Gujarat. Spot prices were quiet.
Castorseed Madras small was trading at Rs 547 per 50 kg. Oil commercial fetched Rs 248 per 10 kg from the low of Rs 245.50.
In edible oils, prices of groundnut oil edged up from the early low level of Rs 340 to Rs 344 per 10 kg.
However, the demand was low despite the beginning of the month's retail purchases.
Arrivals were more than 75 tonnes a day. Rajkot advices were steady, with the tin offered at Rs 520.
Prices of palmoleine recovered partially on limited stocks and higher Malaysian advices. The demand was satisfactory. As a result, prices gained Rs 3 at Rs 281 per 10 kg.
Grains: Prices of wheat firmed up further due to uncertainty of supplies and rising prices of open market wheat sale.
Even though the new crop in Gujarat arrived in the market, traders refrained from entering into commitments on forward basis.
On the other hand, there was no rice supply from Madhya Pradesh, resulting prices going up.
Owing to pressure of demand, coarse grains like jowar and bajra recorded a modest rise. Among pulses, barring steadiness in gram, other pulses ruled firm.
Wheat FCI old stock firmed up to Rs 750-775 and better quality at Rs 800 per quintal. Ganganagar wheat fetched Rs 950-1,050, MP-147 Rs 1,000-1,100 and Shihori pissi Rs 1,300-1,600.
The two-year old FCI rice was offered at Rs 650-675 and Punjab parmal better quality at Rs 850-950.
Extra quality ruled at Rs 1,100-1,000. No fresh supplies had reached the city.
In coarse grains, Sholapur new jowar was demanded higher at Rs 750-950, H-5 at Rs 450-475 and Dhuri line at Rs 600-675.
Bajra water drenched inferior was traded at Rs 450-475, Gujarat small at Rs 550-700 and bold at Rs 900-1,000.
Maize hybrid was offered at Rs 475-500 and gawran at Rs 575-625.
Among pulses, gram deshi ruled steady at Rs 1,100-1,150 and dal at Rs 1,400-1,550; moong at Rs 1,375-1,600; urad at Rs 1,225-1,400 and green peas at Rs 1,301-1,325 per quintal.
Tur and tur dal were quiet on pressure of new crop arrivals. Tur ruled at Rs 1,150-1,325 and tur dal at Rs 2,300-2,600 per quintal.
Even inferior varieties were offered at Rs 2,000 per quintal. Masoor fetched Rs 1,400-1,700 and dal Rs 2,000-2,250. Kabuli gram was demanded at the steady level of Rs 1,650-1,700 for superior varieties.