Silver ruled higher but was unable to cross the Rs 6900 mark, and gold, after crossing the Rs 4500 mark, was subdued on lack of fresh interest. Traders are keenly awaiting the announcement of the new liberalised import policy for both gold and silver.
Meanwhile, the Reserve Bank of India has granted permission to seven banks to import gold. The banks, at present, would only cater to the requirements of gold by ornament exporters. At the same time, informed quarters are expecting a new open general licence bullion import policy with differential duties for individuals and NRIs in both gold and silver. In gold, the difference of duty structure is likely to be Rs 50 per 10 gms, and for silver, the same could be around Rs 200 per kg.
At the same time, in the overseas market, it was difficult for gold to cross the $325 per ounce level as it was learnt that Russia had sold 31 tonnes to make payments to miners. At the same time, it was being said that the gold stocks sold were around 60 tonnes. Earlier, the Australian government had sold 167 tonnes of gold which affected sentiments in an adverse manner. The sale of yellow metal by the central bank of Europe is looming large, and hence the activity in gold was affected.
On the other hand, the demand for gold from Italian fabricators had been fairly good. The level of $325 per ounce had been crucial, and prices in Italy dropped to $321.5 per ounce.
Silver touched $ 4.71 per ounce level but the absence of fresh support adversely affected the sentiment and prices declined to $4.62 per ounce. Despite good prospects of further gains, silver had reacted to some extent, and observers would be watching the prices to move above $4.70 level in due course.
In the Mumbai bullion market, standard mint gold commenced last week at Rs 4520, and after narrow movements on weak overseas advices, drifted to end the week at Rs 4470 per 10 gms. Gold 22 carat fluctuated between Rs 4180 and Rs 4135. Official gold biscuits of 10 tolas, after resuming Rs 100 lower at Rs 52, 900, dropped to Rs 52,400.
Ready silver .999 finesse resumed last week Rs 15 lower at Rs 6865, and in earlier deals, declined to Rs 6855. However, it later moved up to the high of Rs 6890 per kg. Silver .916 finesse fluctuated in the range of Rs 6755 and Rs 6790 per kg. Tenderable silver was unchanged at Rs 6855 per kg.
Grains: A firm tendency in extra quality wheat proved to be the main feature of trading on the Mumbai grains market last week. However, prices of inferior and medium quality of wheat were held steady as traders were disposing off the stocks on fear of infection.
Rice ruled steady as demand had been sluggish, and the inflow was restricted due to the lean month. At the same time, reports from Andhra Pradesh indicated poor sowing of paddy on paucity of rainfall, and the rice output there would be affected to a large extent. However, this had no immediate impact on the rice prices in the market. In coarse grains, new crop bajra had started coming to the market.
Among pulses, urad, on new crop inflow, receded but moong was well maintained. The demand was at a low ebb despite the festival season. Imported pulses were confined to gram.
Wheat inferior Punjab moist ruled steady at Rs 600-610 per quintal. Ganganagar medium quality fetched Rs 650-700 and MP-147 was at Rs 650-750. The undertone was better for uninfected wheat which attracted good buying support.
Activity in rice was at a low ebb. In view of the lean months, supplies had been very limited and prices were steady. SLO old was in demand at Rs 900-1000 and new at Rs 850-875. Gujarat-17 ruled steady at Rs 1600-1700 and kolam at Rs 1700-2100. Basmati was offered between Rs 3800-4300. Punjab reported small inflow of new crop rice but it had no impact on prices.
In coarse grains, jowar Sholapur ruled at Rs 600-900 and H-5 at Rs 525-575. Bajra Maharashtra new was offered at Rs 550-600 and Gujarat small was at Rs 580-650. UP bold was demanded between Rs 700-1000.
Maize was steady at Rs 675-700.
Among pulses, gram ruled steady at Rs 1350-1375 and gram dal at Rs 1600-1750. Urad new ruled at Rs 961-971 and old at Rs 875-900. Urad dal was offered at Rs 1375-1500. Moong polished ruled at Rs 1800-2200 and unpolished at Rs 1600-2000. Peas green ruled quiet at Rs 1381-1391 and white at Rs 1125-1150.
Masoor and tur dal prices were steady. Tur dal was offered at Rs 1900-2250 per quintal. Masoor dal was in demand between Rs 1575-1675. The demand was limited in the market, and paucity of funds adversely affected the trading activity.
Oilseeds:Castorseed futures and spot prices firmed up over the last week on the Mumbai oilseeds market. In edible oils, groundnut oil ruled quiet, following a drop in Rajkot prices on expectations of new crop arrival soon. Demand for groundnut at Rajkot was affected due to the availability of cheaper imported oils.
In view of the heavy arrivals of imported edible oils, groundnut oil prices have been under check. Most buyers preferred cheaper imported oils. Besides, palmolein was easy due to heavy supplies.
Castorseed September contract lacked activity for the second week in succession. No orders were reported here while Ahmedabad saw orders to the tune of 1,800 tonnes on the first day. The December contract commenced Rs 6 higher at Rs 1,163.50 per quintal last week and in early deals receded to a low of Rs 1,160. With buying support at lower levels, the contract rose to a high of Rs 1,177. 50 per quintal to end at Rs 1,169 per quintal.
In the spot section, castorseed Madras small was up Rs 5 at Rs 1,200 per quintal. It settled at Rs 1,195. Castor oil commercial was up by a rupee at Rs 270 per 10kg but eased to Rs 269.
In Rajkot, groundnut oil per tin of 15kg dropped from Rs 581 to Rs 554. The fall is attributed to the likely start of arrivals. This prompted stockists to unload stocks. At the same time, demand remained poor. Prospects of the new crop in Saurashtra are bright but it is believed that the groundnut crop will suffer in Andhra Pradesh due to inadequate rainfall.
In forwards, groundnut oil was offered at Rs 325 per 10kg. Ready groundnut oil eased from Rs 361 to Rs 356 per 10kg.
Palmolein was traded between Rs 259 and Rs 256.
