Bullion, Grains Divergent, Groundnut Oil Rises

A mixed trend was perceptible on the Mumbai bullion market last week. Gold ruled firm but silver suffered a mild setback after commencing on a promising note. This was in conformity with the pattern of prices in world markets

Earlier, gold was on the decline and silver steady-to-better. Now gold has been steadly recovering, while silver has been witnessing a drop in prices. While gold, after touching $322, receded to below $320 per ounce, silver declined over the week to $4.15 per ounce. Gold prices in London ruled quiet below $320 per ounce, New York reported better sentiment with a rise in price to some extent.

In view of the approaching demand season in Shravan and thereafter of Pooja and Diwali, sellers were reserved in offering lower rates. Industrial demand for silver was good at lower levels. At the same time, with the rise in the premium of special licences to about 13 per cent and strength of rupee against $, imported cost has gone up. Besides, supplies of gold through the sea route had stopped due to the monsoons.

Standard mint gold commenced last week at Rs 4,455 against the previous level of Rs4,470, and on quiet overseas advices, receded to a low of Rs 4,430 per 10 gm. Later, on moderate demand and firm New York advices, the value shot up to cross the Rs 4,500 mark, and touched a high to be finally placed at Rs 4,580 per 10 gms.

Gold 22 carat fluctuated between Rs 4,095 and Rs 4,235. Official gold biscuits, after commencing at Rs 52,100, dropped to Rs 51,800 but firmed up to Rs 53,600 per tola.

Silver .999 commenced last week at Rs 6,340 against the previous close of Rs 6,370. On weak overseas advices, the price declined to a low of Rs 6,210 only to finally recover at Rs 6,235 per kg. Silver. 916 fluctuated between Rs 6,240 and Rs 6,110. Tenderable silver lost Rs 135 at Rs. 6,240 over the week.

Oilseeds: A firm tendency in castorseeds futures and spot section provided the main feature of trading on the Mumbai oilseeds market last week. With the announcement of the starting of international castoroil futures, coupled with higher overseas advices, spot prices shot up over the week. It was indicated that with international castoroil prices crossing the $800 per tonne level, prospects of fresh export business in castoroil would be promising.

Indian castoroil exporters were keen on offering at $735 per tonne while overseas buyers were keen on lifting at $ 710-715 per tonne. Looking to the better overseas advices, shippers were hopeful of god export demand in the near future, and hence turned buyer in both spot and futures sections over the week.

Bulls were active in Ahmedabad resulting in the Mumbai castorseed September contract ruling about Rs 30 lower than at Ahmedabad. This forced bears to cover their short positions. Ahmedabad operators also lent support and prices firmed up.

In edible oils, with the disturbances in Mumbai and Ahmedabad, supplies have were interrupted, and prices of groundnut oil firmed up. However, palmolein was steady as fresh inflow of 6,500 tonnes will be coming to the market soon.

Supplies of groundnut oil have been interrupted by the disturbances. At the same time, with the poor inflow of rabi groundnut, prices have been moving up. Groundnut oil had gone up from Rs 362 to Rs 370 per 10 kg. In view of comfortable supplies, palmolein was offered between Rs 257 and Rs. 261. However, quality groundnut oil was in acute shortage and ruled higher by Rs. 5-6 over the market prices.

Grains: A further rise in inferior wheat and good recovery in some pulses were the main features of trading on the Mumbai grains market last week. With an eye on the approaching festival season, upcountry buyers had started lifting imported pulses.

At the same time, with reports of scarce rainfall at the moong and urad producing centres in Karnataka and Maharashtra, prices had firmed up on anticipation of fall in kharif production of moong and urad.

In a restricted activity, rice prices held steady.

Upcountry producing centres indicated good rice crop, and stockists were keen sellers. In view of limited arrivals as well as moderate demand, prices ruled steady with SLO new ruling at Rs 850, old at Rs 900-950, Gujarat-17 at Rs 1,600-1,700 and Kolam at Rs 1,700-2,100. Basmati held steady at the firm level of Rs. 3,800-4,300. In coarse grains, prices were steady. Jowar Sholapur fetched Rs 650-900 and H-5 Rs 525-575. Bajra Gujarat was offered at Rs 850-900 and U.P. bold at Rs 700-1000. Maize new crop was sold at Rs 675-700.

Among pulses, gram deshi was steady at Rs 1,300-1,600. Moong was demanded at Rs 1,400-1,700 but moong dal ruled firm at Rs 1,950-2,000. Tur dal was demanded higher at Rs 1,900-2,100 per quintal. With the demand from upcountry centres, the sentiment in imported pulses had changed for the better.

Coupled with the demand, previous outstanding were also flowing in providing some relief to the paucity of funds.