Divergent trends were witnessed on the Mumbai bullion market last week. Silver flared up to cross the Rs 7,400- mark while gold was unable to extend gains beyond Rs 4,500- mark. Good Dassera demand for silver coupled with limited imported supplies aided the sentiment.
The price fluctuations here followed the overseas trend where gold lacked demand crossing $340 per ounce level. On the other hand silver managed to rise further. In view of higher prices abroad the cost of imports had gone up. Because of the good festival demand, imported supplies receded as the import cost would be about Rs 7,500 per kg at the special licence premium rate of 11.80 per cent. Only a small quantity, thus, was able to be imported by some parties having strong base at Dubai.
According to calculations, after paying interest rate of only six per cent, importers would be able to get a higher interest of more than 15 per cent. At the same time many dealers in Dubai had gone for forward deals when the prices dropped recently.
Silver demand had been fairly good but the supply position was limited helping values to rise sharply after recent stagnation for a pretty long time.
Standard mint gold commenced last week at Rs 4,520, against the previous close of Rs 4,530 and in the absence of good festival demand the opening rate attained last weeks high. On quiet overseas advices and poor demand, values gradually dropped to end the week at the low of Rs.4,470 per 10 gms.
Gold 22 carat fluctuated between Rs 4,180 and Rs 4,135. Gold biscuits of 10-tolas, lost Rs 600 over the week at Rs 52,700. Unless world prices of gold moved up from the resistant lever of $340 per ounce, the sentiment would be quiet.
Ready silver .999 fineness opened last week firm at Rs 7,345, against the previous close of Rs 7,270 and declined to the low of Rs 7,265 before firming up to Rs 7,410 on Dassera demand and poor offerings to end the week at Rs 7,365. The sentiment in silver was bullish. Silver .916 moved between Rs 7,165 and Rs.7,310.
Oilseeds weekly: Castorseed futures and spot prices ruled better on the Mumbai oilseeds market last week. In the absence of fresh development and better Ahmedabad advices, castorseed futures attracted bear covering to close with on-balance gains.
The turnover, however, had not picked up, despite the end of the September contract. Ready castorseed and oils were a shade better recovering previous losses. At the same time new crop arrivals were moist and had not been taken for crushing immediately. Castorseed arrivals in Gujarat had been higher than 6,000 bags a day. After Diwali festival supplies would mount. On the other hand, export demand for castor oil had been reported at lower levels while Indian exporters were quoting higher prices. On the whole the supply position in castorseed and oils would be very comfortable.
Castorseed December commenced last week at Rs 1,157 against the previous close of Rs 1,156.50 and on Monday the lack of follow up support, the contract, on quiet Ahmedabad advices declined to the low of Rs 1,154.50. With the better Ahmedabad advices and rise in spot prices, bear covering ensued and lifted the contract to touch the high of Rs 1,164 to close the week at Rs 1,162. Castorseed Madras small recovered, over the week, from Rs 1,176 to Rs 1,190 per quintal.
In edible oils, on good festival demand coupled with better Rajkot advices prices firmed up in groundnut oil from Rs 344 to Rs 350 to be finally placed at Rs 348 per 10 kg. Higher levels, however, attracted offerings. Groundnut oil prices firmed up from Rs 344 to Rs 350 per kg to be finally placed at Rs 348 per 10 kg.. Palmolein on pressure of offerings receded to Rs 266 at the week-end.
Grains weekly: A steady trend was noticed on the Mumbai grains market last week. The demand had been poor as most of the buyers lifted their requirements before the start of the indefinite strike previous week.
On the other hand supplies of imported pulses continued in a big way having sizeable stocks with the trade. Meanwhile the impact on the increase in railway freight had been minor one as most of the supplies now had been lifted by transport operators.
At the same time reports indicated that the Food Corporation of India would be raising wheat prices by Rs 20 per quintal. Consequently, sellers were reserved in offering wheat at lower rates.
The undertone was better. Wheat Punjab moist inferior was offered steady at Rs 580-600 per quintal. Gangan gar variety etched Rs 700-725 and MP -147 Rs 675-700. Shihori pissi was in demand between Rs 800 and Rs 1,200. Activity in rice was at a low ebb. The inflow from Andhra Pradesh continued but according to traders the government had stopped fresh issue of licences. SL ruled at Rs 875-900 and old at Rs 900-1,000 per quintal. Gujarat -17 was unchanged at Rs. 1,600-1,700 and kolam at Rs 1,700-2,100. Basmati was demanded at Rs 3,800-4,300. Activity in coarse grains was limited. Bajra Gujarat fetched Rs. 525-550 and Maharashtra New at Rs 500-600. UP bold was in demand at Rs 8,000-10,000.
Among pulses, gram was demanded Rs 25 higher on moderate festival demand and higher advices from producing centres. Gram deshi ruled at Rs 1,425-1,450 and gram dal at Rs 1,800-1,950. Kabi gram was in demand at Rs 1,500-1,550. Moong ruled steady with raw offered at Rs 1,600-1,800 and polished at Rs 1,800-2,100. Peas green was offered lower at Rs 13,711,381 and Rohndo at Rs. 1,450. White peas was quiet at Rs 1,100. Old tur was in demand at Rs 850-875 and new at Rs 950-975. Tur dal was offered lower between Rs 1,500-2,200. Masoor was in demand higher at Rs 1,450-1,650 and masoor dal at Rs 1,650-1,800.
