Weekly Market Report - Oils/Bullion

Bullion: Silver zoomed to a record high of Rs 48,700 per kg on the bullion market, during the week under review on heavy buying by industrial units and coin makers, triggered by reports that the metal is rising to a 30-year high in international markets. 

Gold followed the suit and rose smartly on aggressive buying by jewelleries and retailers for the ongoing heavy marriage season. 

Trading sentiment on domestic bullion market bolstered after silver rallied to a 30-year high, and gold climbed to a one-month peak as mounting unrest in the Middle East, spurred demand for precious metals as a haven.

 

Retail customers were buying on expectations of more rise in precious metal prices in coming days which partly supported the uptrend, traders said.   

On the domestic front, silver ready recorded a significant rise of Rs 2,900 to Rs 48,700 per kg and silver weekly-based delivery by Rs 3,035 to Rs 48,545 per kg.

Tracking a general firming trend, silver coins surged by Rs 5,700 to Rs 56,000 for buying and Rs 56,100 for selling of 100 pieces. 

The gold of 99.9 and 99.5 per cent purity shot up by Rs 225 and Rs 235 to Rs 20,745 and Rs 20,635 per ten grams, respectively. Sovereign rose by Rs 50 to a new peak of Rs 16,950 per piece of eight gram.

Oils and oilseeds: Edible oil and non-edible oil prices declined sharply at the oils and oilseeds market during the week under review.

Refined palmolein dropped due to subdued demand from stockists as well as lack of buying support from retailer amidst lower Malaysian advices. Groundnut oil moved down in the absence of demand from retailers coupled with increased arrivals from producing belts. 

Castorseeds bold and castoroil commercial reacted downwards on the back of heavy offloading from stockists and traders. But fag-end buying from industrial users reduced the losses.

Linseed oil fell sharply on reduced demand from paint industry.

Castorseeds futures markets witnessed heavy unwinding from speculators after its recent rally on the back of declining export orders.  

In edible oil segment, refined palmolein resumed lower at Rs 605 and declined further to close at Rs 587 from preceding weekend's level of Rs 608, showing a sharp fall of Rs 21 per 10 kg.

Groundnut oil steady at Rs 765, but later slipped to end at Rs 755 from last weekend's level of Rs 765, disclosing a loss of Rs 10 per 10 kg.

Turning to non-edible section, castorseeds bold opened steady at Rs 6,000, but later plunged to a low of Rs 5,450 before closing at Rs 5,750 from previous weekend's level of Rs 6,000, showing a steep fall of Rs 250 per 100 kg. 

Castoroil commercial resumed steady at Rs 1,230, afterwards it dropped to a low of Rs 1,120 before finishing at Rs 1,180 from last weekend's level of Rs 1,230, showing a loss of Rs 50 per 10 kg.

Linseed oil resumed steady at Rs 710, but later dipped to close at Rs 685 over its last weekend's level of Rs 710, showing a fall of Rs 25 per 10 kg.

Moving to the futures section, castorseeds for March delivery resumed lower at Rs 5,540 and tumbled to a low of Rs 5,100 before concluding at Rs 5,195 from last Saturday's closing level of Rs 5,570, registering a hefty fall of Rs 375 per tonne.