Both silver and gold showed sharp falls on the bullion market last week. After a better start, silver prices suffered a sharp setback midweek and dropped further showing a marked fall over the week in the wake of heavy selling pressure from stockists due to continued and heavy inflow of the metal as a result of imports by non-resident Indians (NRI). The sentiment was also affected by low offtake by industrial units.
Gold also dropped sharply in the wake of selling pressure from stockists induced by heavy NRI imports and in the absence of local demand. Weak price trend in international market also affected the downtrend.
Silver (.999 fineness) resumed better at Rs 7660 but later moved downwards to close the week sharply lower by Rs 170 to Rs 7475. Raw silver and tenderable silver lost substantially from its last weekend close of Rs 7530 and Rs 7650 to Rs 7375 and Rs 7480 at the weekend respectively.
Standard gold started subdued at Rs 4950 and gradually declined to end the week at Rs 4790 as against its last weekend close of Rs 4975. 22-carat gold was nominally quoted lower at Rs 4430 from Rs 4600 in the previous weekend.
Ten-tola gold bar (.999 purity) dropped sharply from Rs 58,000 to Rs 56,000, showing a fall of Rs 2000. 22-carat gold jewellery tumbled by Rs 170 to Rs 4630.
Oilseeds: A sharp rise in castor oil and castorseeds featured trading on the oils and oilseeds market during the week under review. Castor oil started on a better note and gradually moved upwards scoring handsome gains over the week in the wake of sustained enquiries from exporters as well as soap manufacturers. Castorseeds firmed up in sympathy. However, linseed oil dropped sharply due to lack of industrial support and selling pressure in the upcountry markets. Linseeds held steady.
In the edible oils, groundnut oil began easy and dipped further on stockists offerings due to increased supplies from producing regions. However, prices recovered its earlier losses and concluded the week on a steady note. Groundnuts were well maintained. In the futures market, Castorseeds June contract started higher at Rs 1194 and rose further to Rs 1226 in the wake of continued speculative buying and bull support. However, gains were trimmed partially on profit-taking at fag end of the week. It closed at 1212.50 as against Rs 1187 last weekend.
Groundnut oil and groundnut ready bold were unchanged from their last weekend levels of Rs 342 and Rs 1840 respectively. Castor oil commercial shot up by Rs 3.50 to 253.50 and castor ready Madras advanced from Rs 1104 to Rs 1121 at the weekend. Linseed oil dipped by Rs 5 to Rs 297 while linseed ready bold were unaltered at Rs 1300.
Grains:Prices of wheat and rice ruled steady-to-better in restricted activity. There was an inflow of new crop wheat from Gujarat and Maharashtra in the market. Traders said that on account of good quality and quantity, prices of wheat would drop in the next season.
Besides, there would be few takers for wheat of the Food Corporation of India as traders would prefer to purchase wheat directly from Punjab, they said.
In Madhya Pradesh, new crop arrivals had already commenced.
As regards rice, no fresh permits were issued by the Andhra Pradesh government, but traders expect issue of the same to resume in the middle of this month.
In view of year-end and adjustments of dues, dealers refrained from entering into large commitments. Instead, they preferred to liquidate stock on hand. This situation is likely to continue for the next three weeks.
Also, traders are looking forward to supplies of new wheat crop from Madhya Pradesh. At present, good supplies were reported from Maharashtra and Gujarat. Maharashtra tukdi and 2189 quality wheat was offered at Rs 825-900 and Lokwan at Rs 875-925. The Food Corporation wheat fetched Rs 785-800 and mill polished Punjab Rs 825-875. Gujarat varieties were on offer at the same level.
It is likely that soon bulk buyers would find wheat open market prices either at a par or even below that of the FCI prices
Activity in rice was at a low ebb as traders were keen on disposing of stocks on hand. Accordingly, Gujarat-17 ruled at Rs 1200-1500 and Kolaba Kolam at Rs 2000-2200 per quintal.
In course grains, Sholapur jowar was offered between Rs 675 and Rs 950, while bajra ruled slightly better gaining Rs 5 to Rs 10. Gujarat bajra traded between Rs 550 and Rs 1000 per quintal.
Among pulses, prices firmed up in gram and gram dal on poor supplies and higher advices from the producing centres. Gram fetched Rs 1200-1300.
