Both the precious metals ruled easy on the Mumbai bullion market last week. Main attributing factors were: Likely liberalisation of imports in the coming import-export policy and fear of excise seizure of NRI goods from trade.
Earlier, the Madras excise department had seized gold from trade as illegal imports. Presently, excise seized about 40 tolas from a trader supplied by an NRI having valid import bills. This had adversely affected trading. The stockists have unloaded the stocks with them.
Also demand has not yet picked up even at the end of `holi' festival. The marriage season demand would start only in May-June.
Traders are awaiting for the marriage season demand and also the outcome of the proceedings against the trader who is stated to have confessed to his charges. Meanwhile rumours are rife in the market that the demand for importing gold under Open General Licensing scheme is under the consideration of the authorities.
At the same time jewellery exporters have demanded removal of certain hurdles in getting their gold requirements which would mostly would be conceded.
Gold imports through overseas banks are also likely to be featured in the ongoing discussions.
Precious metals abroad still remained shaky with higher levels difficult to maintain.
Gold standard commenced at Rs 4,730 per 10 gm, and in the absence of buying support the opening level became the high of the week and prices tumbled to end the week at Rs 4680. Gold 22 carat fluctuated between Rs 4,375 and Rs 4,310.
Oilseeds Weekly: A paradoxical situation has developed on the Mumbai oilseeds market last week.
Castorseed futures ruled weak while on anticipation of the transport strike edible oils firmed up on hectic activity.
It was indicated that transport strike would affect free flow of exportable goods and hence castorseed futures and spot prices ruled easy. Castorseed futures after crossing the Rs 1,200 mark was unable to attract fresh bull support and declined on lower spot advices as well as Ahmedabad declining trend.
Bulls preferred to book profit at bulges and in thin trading activity, price fluctuations have been large. Meanwhile export demand for castor oil has also been very poor.
Castorseed March contract remained untransacted over the last week and no orders had been issued.
Despite hedge facility provided to the spot-houses and exporters they were not at all inclined either to effect deliveries or issue orders for delivery.
This is the prevailing situation when traders optimistically venture for the international activity in castorseed futures, and also ask for futures trading for other oilseeds and oils.
Edible oils: Groundnut oil firmed up on buying spree from Rs 342 to Rs 354 per 10 kg. Sellers were reserved as prices had been on the rise along with the demand. Similarly, palmoleine was up from Rs 276 to Rs 282.
However, with fairly large arrivals of rapeseeds the rapeseed refined prices have been steady at Rs 271.
The fear of transport stir has resulted in a rise in demand. Indications show that despite application of the Essential Commodity Act in Gujarat, the transport strike would continue.
Grains weekly: A firm tendency in indigenous cereals and quietly steady tendency in imported pulses, highlighted trading on the Mumbai grains market last week. There was a virtual scramble for lifting wheat and rice following the announcement of the transport strike from March 31.
Wheat prices of wheat and rice fluctuated every hour depending on the demand and supply.
Fresh supplies from hinterland stood at a standstill but trucks were still operative in Gujarat and Maharashtra before the deadline.
Meanwhile, transport authorities have already washed their hands of the situation and now the ball is in the finance ministry's court.
Prices ruled easy in some of the imported pulses. In hectic activity prices of wheat went up about Rs 50 over last week.
At the same time transporting of materials from New Bombay to other states are also likely to be suspended.
Among pulses, peas white lost sizable ground on start of arrivals of new crop from Uttar Pradesh and ruled at Rs 1000 to 1100. Green peas fetched Rs 3,331 to 1,351.
Gram deshi was demanded at Rs 1150 to 1,200 and urad Rs 1,350 to 1,400. Gram dal was in demand at Rs 1,400-1,600 and tur dal at Rs 2,200-2,450.
It was indicated that with the transport strike the despatches of the imported pulses would be affected and hence the demand from upcountry centres has stopped. The overall activity was poor.
