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Bullion Divergent, Groundnut Oil Subdued, Pulses Up

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BSCAL

The Mumbai bullion market witnessed a mixed trend last week.

The depressed condition in gold caused further inroads into the value which drifted below the Rs 4,000 mark over the last seven days .

Paucity of stocks coupled with the marriage season demand aided the sentiment in silver which crossed the Rs 7,400 mark ,dropped in sympathy with the fall in prices abroad and the weak trend in gold to recover sharply to Rs 7440.

In view of very good supplies, gold turned easy, despite higher cost of import following drop in the value of rupee which touched the low of Rs 349.90 at one time.

 

The fall in gold was the outcome of the drop in prices abroad to a recent new low of $290.50 per ounce level, a 12-year low in London market and hence imported gold cost less to that extent.

On the other hand, the overseas silver advices were slightly lower in sympathy with gold. Shortage of the white metal has been analysed by experts there who say that silver prices in future would go up to the level of $8 per ounce.

Activity was at a low ebb in the bullion market in view of trade agitation and declining prices overseas.

Buyers refrained from entering into larger commitments in gold. On the supply side traders can at any time enter into commitments with banks or semi-government organisations.

Standard mint gold commenced last week at Rs 4,005, against the previous close of Rs 4,020 and on weaker overseas advices dropped below Rs 4,000 at Rs 3,925 per 10 gms to finally close at Rs 3,915.

Gold 22 carat resumed Rs 15 lower at Rs 3,705 and declined to Rs 3,630 to close the week at Rs 3,830 per 10 gms.

Gold official biscuits dropped from Rs 47,000 the previous Saturday to Rs 45,800. Ready Silver .999 fineness commenced last week firm at Rs 7,445, against the previous close of Rs 7,360 but receded to the low of Rs 7,340 to close at Rs 7440 per kg.

Silver .916 fineness resumed last week Rs 90 higher at Rs 7,350 but declined to Rs 7,245 to be finally placed at Rs 7340. Tenderable silver was offered at Rs 2,445.

Grains: A sharp rise in prices of gram and masoor provided the main feature of trading on the Mumbai grains market last week. This was attributed to the announcement of permitting exports under OGL of pulses in 5 kg. packings .

On the other hand, with the start of the trading, heavy inflow of wheat from Maharashtra stemmed the price rise.

Supplies of coarse grains and rice held steady. In view of the strike the demand was fairly good in wheat and pulses.

The Union government is thinking in terms of allowing exports of wheat products in 5 kg. packings

With the market reopening, about 150 truckloads of wheat arrived in the city from parts of Maharashtra. The inflow from Madhya Pradesh could be expected soon.

In view of these supplies prices have dropped and Maharashtra wheat was sold at Rs 750-950 per quintal. Madhya Pradesh wheat dropped by Rs 200 at Rs 800-1,200.

Activity in rice was moderate and in view of the good supplies prices ruled steady. Even in coarse grains supplies were very good for jowar and bajra. Jowar was sold at Rs 400-800 and bajra at Rs 500-700.

Among pulses, a steep rise was recorded in masoor and masoor dal following the government announcement of permitting exports.

Masoor was in demand Rs 150 higher at Rs 1,500 and masoor dal firmed to Rs 1,900-1,950.

Gram firmed up by Rs 50 per quintal with deshi gram demanded higher at Rs 1,650. Gram dal was at Rs 2,100-2,200.

Kabli gram was demanded higher at Rs 1,550-1,650. Moong and moong dal ruled at Rs 2,000-2,400 and Rs 2.200-2,500 respectively.

Green peas was in demand at Rs 1,301 and white at Rs 1,050. Tur was in demand at Rs 1,100-1,150 per quintal.There was brisk demand following the announcement of permitting free exports of pulses.

Oilseeds: In limited trading activity, castorseed futures ruled firm on the Mumbai oilseeds market last week.

Earlier, trading was suspended due to agitation by the trade and only a few deals had been reported in the futures.

Later, activity in the spot section started but prices ruled steady for castorseed and oils

In edible oils, groundnut oil ruled quiet in sympathy with lower advices from Saurashtra. However, palmoleine was slightly better as the advices with regard to Malaysian palm oil were firm.

Trading activity was curtailed by the strike but it had very little impact on the prices of edible oils which were sheltered by the presence of good imported palmoleine stocks.

Despite the beginning of the month, retail purchases of groundnut oil was quiet. With the resumption of loading and unloading operation, supplies are expected to be once again flowing in larger quantities here.

However, on account of buying support by the NDDB, groundnut oil prices have been easing only to a small extent.

Castorseed December contract lacked activity right from the beginning of the last week.

In view of higher prices, which prevailed in the spot section, there was very little possibility of orders to be issued against the maturing contract. The March delivery commenced last week a rupee higher at Rs 1,161 and in early deals eased to the low of Rs 1,159 but on bull support went up to touch the high of Rs 1,166 per quintal to finally close at Rs 1168. Ready Castorseed Madras small ruled steady at Rs 1,2243 per quintal.

Castor oil commercial was offered steady at Rs 279 per 10 kg.

In edible oils, prices ruled quietly steady in groundnut oil. Despite the stoppage of fresh supplies groundnut oil prices ruled quiet and after earlier rate of Rs 338, eased toaround Rs 336 per 10 kg.In view of comfortable groundnut supplies in Saurashtra, advices of groundnut oil from Saurashtra were quiet. Imported palmoleine fared slightly better on account of higher palm oil advices which came in from Malaysia.

Palmoleine was in demand a rupee higher at Rs 277 per 10 kg, in view of sufficiently larger stocks

Sellers were active in disposing off the same. At the same time fresh imports has dropped considerably.

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First Published: Dec 08 1997 | 12:00 AM IST

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