Better tendency in silver was the main feature on the Mumbai bullion market last week. On the other hand, gold ruled easy in view of good supplies and below normal demand for the brick buying marriage season which had already been in full swing.
The inflow of gold, both official and smuggled, had been very good, while demand has been limited. In view of the hesitancy noticed in prices abroad, stockists refrained from entering into larger commitments.
The London precious metal market recovered from the recent lows and touched $341.50 per ounce. Silver too was up from $4.64 to $4.75 per ounce. In view of the support in prices, silver has been maintained below the $4.50 per ounce level. In the backdrop of the sale of RBI and World Bank gold, the sentiment was bearish.
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The havala rate had gone up to $39.50, while special licence premium had dropped to 12 per cent. Standard mint gold commenced last week at Rs 4,780 and in the absence of good demand, the opening rate was higher and values dropped gradually in limited activity.
It ended at Rs 4,780 per 10 grams. Gold 22 carat fluctuated between Rs 4,430 and Rs 4,395.
Oilseeds: After touching the recent low, castorseed futures recovered on the Mumbai oilseeds market last week. Spot advices were better as supplies dwindled at lower levels. Untimely rainfall hampered supplies.
The sentiment, however, was still subdued as the export demand for castor oil was not up to the mark. In the absence of good export commitments, spot houses and exporters were unwilling to extend deals. Normally, they make purchases at reasonable levels, rather than hedge the same in the June contract. At the same time, the widening gap between the Ahmedabad and Mumbai contracts narrowed from Rs 25 to about Rs 15 with the Ahmedabad contract still ruling higher.
Edible oils prices moved narrowly on imported supplies of palmoleine and sunflower oil. Prices of groundnut in Saurashtra had been on the rise. But due to sluggish demand, groundnut oil ruled higher. Thus, consumers resorted to cheaper imported oils.
In view of the fall in the groundnut oil production, inflow has been affected.
However, soon more and more supplies would be available from the south as Rabi crop groundnut receipts would be in full swing. Consumers however, would not prefer south Indian groundnut oil, but they have to depend on the same for the next two months. Thereafter, imported palmoleine and sunflower oils would be readily available. Groundnut oil fluctuated between Rs 369 and Rs 366 per 10 kg. At the same time, palmoleine eased from Rs 295 to Rs 293.
Grains: A firm tendency in gram was the main feature on the Mumbai grains market last week. Reports from producing centres indicated good deal of low production this season and hence prices had been on the rise. According to trade, sizeable quantity of imported gram would be forthcoming.
This import would be able to arrest the undue rise in prices. At the same time, supplies of imported pulses were fairly large and had been able to keep prices under check. The demand had been at a low ebb. The paucity of funds persisted with delay in receiving outstanding payment. In cereals, supplies of wheat from Madhya Pradesh had been satisfactory and the seasonal demand was good for quality wheat like Shihori pissi. Prices ruled steady in rice and coarse grains.
Wheat Gujarat and Maharashtra tukadi ruled at Rs 7,700-825 per quintal. Gujarat lokwan ruled at Rs 825-900. MP-147 inferior ruled at Rs 800-1,000 and Shihori Pissi at Rs 1,200-1,300. Rice prices ruled steady with Gujarat-17 demanded between Rs 1,400 and Rs 1,700 and Kolabal Kolam between Rs 1,800 and Rs 2,400 per quintal. In coarse grains, Sholapur jowar was offered at Rs 550-850 and H-5 at Rs 450-525. Bajra ruled between Rs 575 and Rs 975.