Gold Rules Easy, Silver Rises, Groundnut Oil Rebounds

Gold, after hectic movements in both the directions, ruled easy on the Mumbai bullion market last week, while silver moved up from the lower levels on better advices from abroad.

Gold overseas advices were distinctly weak as prices, which had recovered earlier to $357, dropped sharply below $350 to about $346.50 per ounce. On the other hand, silver abroad, after rising to $5.07, receded to $4.97 per ounce. Earlier, it was expected that gold would drop below $350 and silver would touch $4.50.

In the domestic market, silver .999 fineness resumed last week Rs 10 lower at $ 6,995, but on better overseas advices started rising in the early part of the week. However, with the steep fall in gold, it receded to a low of Rs 7,035.

On the other hand, standard mint gold commenced Rs 10 lower at Rs 4,930 and on good contraband supplies drifted to a low of Rs 4830 per 10 gms. Gold .916 fineness fluctuated between Rs 4,560 and Rs 4,465. Gold official biscuits were down Rs 1,000 at Rs 56,700 per 10 tolas. In view of weakness overseas, and heavy accumulation of stocks in Dubai, more arrivals cannot not be ruled out.

Oilseeds: Castorseed futures ruled easy on the Mumbai oilseeds market last week. Trading in the new June contract commenced but no trading was done for the first two days as a protest against the proposals of daily clearing pressed by the Forward Markets Commission. Particularly, the lack of export demand in castro oil caused selling by upcountry bulls. Fresh buying support by bulls at lower levels and profit-taking at higher levels affected the sentiment.

In edible oils, groundnut oil recovered partially, while palmoleine moved in a narrow range as more and more supplies poured in.

Castorseed March commenced last week at Rs 1,158.50, against the previous close of Rs 1,162 and moved up on Monday to touch a high on Rs 1,162.50. However, lack of follow-up support and weak Ahmedabad advices affected the sentiment. Besides, profit-taking by bulls and offerings by spot-houses as hedge brought down the contract to a low of Rs 1,138.50 to end the week at Rs 1,140.50. Spot prices moved narrowly.

New June contract commenced trading at Rs 1,211 on Wednesday, but on bull support, went up to a high of Rs 1,230 before ending the week at Rs 1214 per quintal.

In edible oils, the demand for groundnut oils was limited. Rajkot prices ruled barely steady and hence prices receded to Rs 339. But later recovered to end the week at Rs 343 per 10 kg. Palmoeine reported good supplies of about 6,000 tonnes. Palmoleine moved narrowly between Rs 280 and Rs 283 per 10 kg. At the same time, cottonseed refined oil, too, was available at Rs 283 per 10 kg. In view of very good cotton crop, supplies of cottonseed refined would be fairly satisfactory.

Grains: Prices ruled easy in wheat, rice, coarse grains and some of the pulses on the Mumbai grains market last week. The fall in wheat prices was attributed to the start of new crop inflow in Gujarat, arrivals of imported wheat and distribution of wheat by the co-operative sector in Maharashtra.

New crop wheat from Gujarat fetched Rs 1,100-1,200 per quintal. Supplies were reported for Ganganagar variety which ruled easy at Rs 925-950. Punjab FCI wheat was available at Rs 775, while Punjab polish was offered at Rs 800-825, Rs 50-75 lower. Activity in rice was at a low ebb. Prices ruled quiet on expectation of arrivals from Andhra Pradesh and Madhya Pradesh. SLO ruled at Rs 900-950, Gujarat-17 at Rs 1,200-1,600 and Kolaba kolam at Rs 1,700-2,200. Basmati, however, ruled firm at Rs 2,800-3,500.

In coarse grains, new crop supplies of Sholapur varieties brought down the prices at Rs 725-850.

H-5 was steady at Rs 425-450. Bajra also ruled quiet with Gujarat small being offered at Rs 550-625 and bold at Rs 700-900. Maize ruled at Rs 575-675.