After initial firm trend, values receded from the higher levels in both the precious metals on the Mumbai bullion market last week. Gold was up above Rs 4,800 and silver in early deals touched Rs 7,100 but later receded on pressure of imported supplies coupled with fall in demand at the higher level, mainly on slight fall in prices on the London Bullion market.
Despite good marriage season demand, the inflow has maintained to cope with the demand and values fluctuated narrowly on overseas advices. The hectic activity has, in fact subsided, despite marriage season demand in view of smooth imported inflow.
In overseas with the weakness of $ against Yen, the demand for bullion's and other precious metals has increased, resulting in good reactionary rise in demand. Gold recovered to a high of $350 per troy ounce and silver touched $4.87 per ounce level. However, on reports from Germany of revaluation of gold reserves traders feared that the government would sell gold in the market.
Standard mint gold commenced last week at Rs 4,840, a previous close and in early deals on higher overseas advices touched a high of Rs 4,850. However, lack of fresh demand and weaker overseas advices at weekend had adverse impact on fresh buying and values receded. At the end of the week it touched Rs 4790 per 10 gms.
Gold 22 carat fluctuated between Rs 4,485 and Rs 4,430. Gold bar, 10-tolas, lost Rs 600 at Rs 56,000. Ready silver .999 fineness opened at Rs 7,075, against the previous close of Rs 7,080 and touched the high early at Rs 7,100 but receded to close at Rs 6870. Silver .916 fineness fluctuated between Rs 7,000 and Rs 6,765. Tenderable silver was offered at Rs 210 lower at Rs 6,875 per kg.
Oilseeds: Listless conditions marked trading in castorseed futures on the Mumbai oilseeds market last week, with prices on the decline due to absence of follow up support. Spot advices, however, were better but to a small extent.
The prices hardened early on expectations of fresh export demand for castor oil. The export demand, however, has been poor. In edible oils, higher levels were hard to maintain and prices receded after starting the week at higher levels. Particularly good imported supplies of palmoleine and sunflower oil arrested the rising tend in groundnut oil.
With poor arrivals groundnut prices have been on the rise in Saurashtra. New receipts would be coming mainly from south where rabi groundnut crop had been very good.
In edible oils, despite higher prices and poor fresh arrivals of groundnut, oil mills were not in a position to sell groundnut oil at higher levels. Even slight rise in prices adversely affected the demand. Supplies from the south has been picking up. Arrivals of groundnut oil averaged to 75 tonnes. Ready groundnut oil eased from Rs 365 to Rs 355 per 10 kg. On quiet Malaysia advices palmoleine was down from Rs 287 to Rs 282 per 10 kg.
Grains: In poor activity, prices ruled quiet on the Mumbai grains market last week. With the rise in imports gram, moog, urad, tur prices ruled easy due to the lack of good demand coupled with financial difficulties. Prices of rice and coarse grains held steady but the undertone was quiet on sluggish demand. The closure of schools and colleges due to holiday season has adversely affected demand.
In wheat, supplies were poor from Punjab and that too of moist goods. Arrivals were fairly good from Ganganagar and to some extent from Madhya Pradesh. Buyers had lifted their requirement of superior Shihori pissi around Rs 1,200-1,300 and now the demand for superior varieties has dropped.
Activity in rice was moderate on good supplies and prices were steady. In the absence of sale to trade by the Food Corporation of India, no inferior varieties were available. No receipts of Punjab Parmal had been reported. Gujarat-17 ruled at Rs 1,450-1,500 and Kolaba Kolam Rs 1,700-2,200. Basmati ruled firm between Rs 3,400-3,700 per quintal.
Among pulses, on increased pressure of imports along with poor demand, gram declined further to Rs 1,375-1,400, Kabuli at 1,400-1,600 receded to Rs 1,600-2,100, moong dal to Rs 2,200-2,500. Peas green fetched Rs 1,381-1,400 and white at Rs 1,125 per quintal. Tur old was offered at Rs 1,100 and new at Rs 1,200-1,225. Tur dal ruled quiet at Rs 1,900-2,000.
