Sugar In A Groove; Bullion, Groundnut Oil Decline

Gold and silver prices lost gained ground on the bullion market in early trading on Wednesday, dealers said.

Physical buying petered out at the improved level while reports of overnight losses in the world market prompted light profit-taking in the local market, dealers said.

Arrivals through official as well as unofficial channels fell today but demand resistance capped gains, a dealer said.

Gold biscuit (116.50 gram) was steady at Rs 56,600 per piece. It was up by Rs 200 per piece on Tuesday.

The sentiment was subdued during early trade but market may bounce back looking at the poor arrivals, a trader said. Gold 24-carat opened at Rs 4,840 per ten gms as against yesterdays closing of Rs 4,845. It closed Rs 4,825.

Gold 22-carat opened lower at Rs 4,475 against previous closing of Rs 4,480.

Silver .999 opened lower at Rs 7,050 per kg, Rs 30 less than yesterdays closing.

Oilseeds: Castorseed March delivery lost the gained ground and dropped to Rs 1,137/1,138 per quintal from Rs 1,151/1,152 on renewed speculative selling, dealers said.

Overseas buying was low while higher new crop supplies prompted bull liquidation, one trader said.

June delivery moved down to Rs 1,200/1,205 per quintal from Rs 1,220/1,225 but volumes were low, traders said.

Groundnut oil ruled easy and fell by two to three rupees to Rs 339/340 per 10 kg as fresh seasonal demand petered out and arrivals rose to 80/100 tonnes, traders said.

Imported palm oil was quiet at Rs 280/281 per 10 kg.

In Rajkot spot groundnut fell to Rs 508/510 per 15 kg from Rs 514/515, largely reacting to imported sunflower oil.

Sugar: S-30 grade sugar remained more or less in yesterdays range and was quoted at Rs 1230-1275 while the M-30 grade was pegged at Rs 1265-1360.

Ex-factory S-30 grade sugar was quoted around Rs 1207-1230, while the same deal for M-30 grade ranged between Rs 1250 and Rs 1325.

Cotton: Cotton prices dipped in early trading on Wednesday amid sluggish mill buying and fresh sale of stock by state-owned agencies, dealers said.

Indian government has allowed higher cotton export quota failed to cheer the market, said a dealer.

The government has allowed export of 165,000 bales (170 kg each) for the current cotton season.

With this, the government has so far allowed export of 1.22 million bales of cotton in the current season of 1996/97, traders said.

Out of the fresh quota of 165,000 bales Cotton Corporation of India will get 100,000 bales and 65,000 bales will be allotted to State Federation of South India, traders said.

In spot deals Bengal-deshi slid by 5/10 rupees to 785/815 rupees per maund (37.32 kg) while F-414 slid by 5 rupees to 1,805/1,825 rupees per maund.

Gujarat Kalyan (medium-staple) was steady at 11,200/11,500 rupees per candy (355.56 kg).