Gnut Oil Takes Another Knock, Sugar Moves Up

Groundnut oil dropped sharply while castorseeds futures eased moderately in a steady to easy oilseeds market here yesterday. Activity was poor with most of the dealers stranded due to the motormen's strike on the western and central railway affecting the transport facilities to the metropolis.

Among edible oils, groundnut oil dropped sharply on account of stringent offtake as against increased stockists offerings. The industrial sector was dull and listless and prices ended on a steady note in the absence of support.

In the futures market, Castorseeds December opened at Rs 1170 and later declined on profit taking to close at Rs 1168 as compared to the previous close of Rs 1169.50.

Groundnut oil dropped to Rs 338 from Rs 341. Groundnut ready at Rs 1880, linseed oil at Rs 285, Linseeds ready at Rs 1300, Castor oil commercial at Rs 269 and Castorseeds ready Madras at Rs 1195 were unaltered from the previous.

Bullion:Prices suffered a setback at the bullion market yesterday due to poor attendance and lack of support. Activity was poor on account of transport facilities being affected by the motormen's mass casual leave agitation on both central and western railways in the metropolis.

Silver moved down by Rs 20 per kg in the absence of buying interest and increased stockists offerings.

Gold declined moderately due to lack of local demand. Silver ready .999 fineness dropped to Rs 6775, raw silver .916 fineness to Rs 6675 and tenderable silver to Rs 6780 from the previous close of Rs 6795, Rs 6695 and Rs 6800 respectively.

Standard gold declined to Rs 4400 from Rs 4410. 22-Carat gold was nominally quoted lower at Rs 4070 from Rs 4080. Ten-tola gold bar .999 purity slumped to Rs 51,700 from Rs 52,000 previously.

Sugar:Prices extended declines as consumer buying remained sluggish , dealers said. News that the government had raised prices of sugar supplied through public distribution system by 90 paise per kg to Rs 11.40 per kg had little impact on the market.

Consumers take about five million tonnes of sugar every year from the public distribution system.

The free sale quota allocation for October was raised to 900,000 tonnes from 750,000 tonnes released for September. Meanwhile sugar mill delivery bounced back from the earlier reduced level on fresh outstation support.

"Local millers are witnessing higher demand from Gujarat and Rajasthan states", one broker said.

Mill delivery sugar grade S-30 experienced a rise by Rs five to Rs 10 to Rs 1,385/1,400 per quintal and sugar grade M-30 moved up by Rs 10 to 25 to Rs 1,410/1,430.