Gold, Silver Glitter; Pulses Quiet, Oilseeds Steady

A firm tendency was noticed on the Mumbai bullion market last week. Both precious metals gained modest ground with gold crossing Rs 4,000 and silver Rs 8,400 mark.

The firmness was partly due to the marriage season demand and paucity of supplies due to firm overseas advices.

Overseas gold moved up from $277 per ounce to $305 per ounce. Silver, too, was in demand as high as $6.17 per ounce. Supplies in silver have been limited and overseas sentiment bullish, values here are also expected to go up on further good demand.

Traders, however, are keenly watching the trend abroad as gold above $300 would met with selling pressure and sale by central banks.

 

Banks and government agencies have brought large quantity of gold and at rising rates, this would be supplied to the buyers. Hence, fresh imports are likely to be restricted.

Standard mint gold commenced last week at Rs 4,000, against the previous close of Rs 4,010 and on higher overseas advice gradually went up to touch the high of Rs 4,060 before closing at Rs 4050 per 10 gms. Gold 22 carat resumed Rs 10 lower at Rs 3,700 and firmed to Rs 3,755. Gold official biscuits was up from Rs 46,800 to Rs 47,500 on Friday last.

Ready silver .999 fineness commenced at Rs 8,390, against the previous close of Rs 8,365 and crossed Rs 8,400 mark to a high of Rs 8,470 to close at Rs 8530 per kg, steep hike of Rs 165 from the last week's close.

Silver .916 fineness fluctuated between Rs 8,290 and Rs 8,370. Tenderable silver was traded Rs 5 higher than that of .999 fineness.

Grains: A steady tendency was seen on the Mumbai grain market last week. The declining trend in wheat prices have been arrested for the time being and traders anticipate further fall in prices with new crop arrivals. The Food Corporation of India have been authorised to sell wheat to the flour mills at the price of Rs 450 per quintal and would expect the mills to sell flour at Rs 650 per quintal. In limited activity prices of rice and coarse grains were steady.

Among pulses, urad and peas ruled quiet but gram and moong held ground. New crop arrivals in gram from Gujarat would start soon.

Wheat Punjab inferior was offered at Rs 675-700. Maharashtra at Rs 675-750 and Gujarat at Rs 825-850 per quintal. Ganganagar wheat fetched Rs 725-750, M P-147 ruled steady at Rs 750-850 and Shihori Pissi at Rs 800-1,000.

Activity in rice was at a low ebb. In view of comfortable supplies, prices were steady. Andhra Pradesh SLO fetched Rs 925-975. Gujarat-17 was demanded at Rs 1,150-1,650 and Kolam Rs 1,700-2,200. Basmati was held steady at the firm level between Rs 4,000 and Rs 5,500. In coarse grains, jowar was steady with Sholapur done at Rs 600-900 and H-5 at Rs 400-500. Bajra Maharashtra fetched Rs 500-800 and Gujarat at Rs 550-700. Gujarat bold was demanded higher at Rs 900. Maize ruled at Rs 475-600.

Among pulses, gram deshi was done steady at Rs 1,600-1,650 and kabli at Rs 1,550-2,000. Gram dal was traded at Rs 2,000-2,200. Moong ruled steady at Rs 1,750-2,500 and moong dal at Rs 2,400-2,600. Urad was down Rs 25 at Rs 1,176-1,225.

Urad dal was done at Rs 1,900-2,000. Peas green was offered lower at Rs 1,2512-1,271 and white at Rs 1,075. Tur ruled at Rs 1,391-1,425 and tur dal at Rs 2,500-2,800.

Oilseeds: A quietly steady tendency was noticed in castorseed March delivery, while prices moved up in the June contract on the Mumbai oilseeds market last week. Spot advice was quiet as the inflow had been on the rise in Gujarat with arrivals touching a high of 45,000 bags. At the same time export demand for castor oil had been below normal.

According to reports Brazil had turned seller in the overseas market and hence prospects of Indian castor oil had dimmed. Other countries would not turn to Indian castor oil due to higher prices. Unless prices declined here, the demand for castor oil for export would be limited.

In edible oils, prices ruled steady as the demand had been limited because of the month/end consideration. In view of the strike by tankers road transport supplies have been affected. However, prices of groundnut oil did not go up.

Fresh supplies of palmolein have also been affected due to transport strike. In view of paucity of funds, sellers were active and refrained from keeping stocks.

Castorseed March commenced last week at Rs 1,174, against the previous close of Rs 1,175 and in early deals went up to touch a high of Rs 1,175.50. In thin trading activity price movements narrowed. Ahmedabad prices were still ruling Rs 23 lower than here.

The March contract on Thursday dropped to the low of Rs 1,170.50 to end the week at Rs 1,180 per quintal. On the other hand in thin trading activity the distant contract was up from Rs 1,208 to Rs 1,215 per quintal.

In the spot section, with the increasing inflow the sentiment had been quiet and Madras small castorseed ruled at Rs 1,207 per quintal. Castor oil commercial fetched Rs 271.50 per 10 kg.

In edible oils, groundnut oil touched the low of Rs 360 and later business was transacted at Rs 361 per 10 kg. Palmolein fluctuated between Rs 302 and Rs 304 per 10 kgs.