A mixed trend in precious metals highlighted trading on the Mumbai bullion market last week. Gold ruled quiet but silver recovered to firm up on good industrial demand and encouraging upcountry as well as overseas advices. The demand is expected to rise with the coming festive season.
Both precious metals fluctuated in line with the advices from overseas. London gold was unable to move beyond $326 per ounce while silver was stood firm at $4.41 per ounce level. Again, overseas sentiment was at the cross-roads. With the good demand industrial and others, prices moved up in silver while gold lacked both investment strength and demand from banks.
On the contrary, fears still persist in Europe that the Central banks would have to sell gold to keep the record straight as far as the financial position is concerned.
Under the circumstances ,the sentiment was still depressed and only a reactionary recovery had been reported there. Reflecting the trend gold lacked fresh buying support. It was stated that in recent low levels hectic buying had been reported in gold at upcountry centres and fresh buying had been at a low ebb due to the absence of good demand and rise in prices.
Compared to gold the demand for silver had been good with good industrial demand. The demand has also been good for the coming rakhi festival. Gold standard commenced last week at Rs 525, against the previous close of Rs 4,550 and values moved up a high of Rs 4,550 but on quiet overseas advices, dropped to the low of Rs 4,520 to end at Rs 4,530 per 10 gms.
Gold 22 carat fluctuated between Rs 4,210 and Rs 4,180. Official gold biscuits were offered Rs 200 lower at Rs 53,000 per 10-tolas.
Oilseeds: A distinctly firm tendency was seen in castorseed futures and spot section on the Mumbai oilseeds market last week. In view of the heavy rainfall, supplies of castorseed in Gujarat was hampered. At the same time bulls were active buyers in Castorseed September contract at Ahmedabad, hence prices there have were higher by Rs 35.
Consequently, bears rushed to cover the contract at lower rates. Though activity was at a low ebb, prices firmed up on firm spot as well as Ahemadabad advices. Exporters were unable to put through larger commitments in castor oil and preferred to hedge at bulges as Brazil new crop would be marketed soon. The crop outlook there had been fairly good. With the rainfall all over the producing centres, the outlook for the castorseed crop is expected to be good.
In edible oils, the sentiment changed and the sellers were reserved. Heavy imported supplies of palmoliene, sunflower and soyabean oil arrested the rising trend in groundnut oil. Even now the inflow of rabi crop would have been steadily on the decline and prices on the rise but for the sluggish demand due to imported supplies.
Groundnut oil after touching Rs 374 eased to Rs 370 to end at Rs 372. Palmoliene ,after rising to Rs 256 early in the week, on heavy arrivals declined to a low of Rs 251 but ended the week better at Rs 256 on good festival demand.
Grains: Barring a fall in deshi gram and gram dal, prices ruled steady in cereals and pulses last week. Activity was below normal, and despite forthcoming festival season, the demand was low. Upcountry outstanding payments had been delayed beyond time, and hence fresh demand for imported pulses from these centres were poor. On the whole buyers were cautious.
Among pulses, the outlook for moong and urad kharif crop has been bright following new of good monsoon. A dry spell would be helpful only during the harvest. Excess rainfall would help the rice crop which could be marketed around Diwali.
Wheat ruled steady with Punjab inferior variety offered steady at Rs 640-650 and Gangadhar at Rs 675-700. MP-147 fetched Rs 650-750 and Shihori Pissi at Rs 700-1100. Activity in rice was low. In view of the lean months supplies were poor.
Prices have been steady with SLO new offered at Rs 850-875 and old at Rs 900-950 a qunital. Gujarat-17 ruled at Rs 1,600-17,00 and kolam at Rs 17,00-21,00. Basmati was traded between Rs 3,800-4,300.
In coarse grains, jowar Sholapur ruled steady at Rs 700-900 and H-5 at Rs 525-575. Bajra Gujarat small was offered at Rs 580-650 and UP bold at Rs 700-1000 per quintal. The inflow of new maize crop has been limited resulting in prices ruling steady at Rs 675-700.
Among pulses, gram deshi ruled easy at Rs 1,300-1,400, and gram dal at Rs 1,500-1,700. Kabli gram was offered at Rs 1,300-1,600.
Moong lacked good activity but prices held steady between Rs 1,400-1,700. Moong dal fetched Rs 1,950-2,200. Peas green ruled at Rs 1,381-1,400 and white at Rs 1,125-1,150 per quintal. Urad was steady at Rs 1,050-1,075 and urad dal at Rs 1,450-1,700. Tur was offered at Rs 1,050-1,200, and tur dal at Rs 1,900-2,100.
