Bullion Weekly: A flare up in silver, touching Rs 6,900 mark provided the main feature of trading on the Mumbai bullion market last week.
Gold after a better start moved narrowly due to poor trading activity. The firmness in silver was attributed to rise in prices of silver abroad coupled with fall in imported supplies on count of rising value of the $. At the same time rupee was under pressure.
The demand for gold had been sluggish as traders refrained from entering into commitments on expectations of a likely announcement liberalising imports of gold. Meanwhile, the sentiment abroad has been at crossroads in both the precious metals. Silver on London bullion market was able to move out of the level of $4.55 and shot up to $ 4.66 per ounce. Overseas traders are hopeful of a further rise in silver values. On the other hand, gold lacked fresh interest above $325 per ounce level and moved in a narrow range on both ways.
The firm trend in the dollar also adversely affected the investment buying in gold. Despite reports of heavy purchases of gold by Dubai, the price level remained unaffected. It was recalled that Dubai traders were active buyers at the lower levels and also for three month options. Now overseas traders are of the view that gold will not drop below $320 per ounce and it will find support from buyers. Activity on the Mumbai bullion market was affected due to recent raids by Income-Tax and Excise Departments.
Gold standard commenced last week with a better tendency at Rs 4,540 up from the previous close of Rs 4,500 and in early deals touched a high of Rs 4,545 but receded to end at a low of Rs 4520 per 10 gms.
Gold 22carat fluctuated between Rs 4,205 and Rs 4,180. Gold bar, 10-tolas, was up from Rs. 52,700 to end at Rs. 53,000. In silver, .999 fineness resumed last week Rs 195 higher at a firm level of Rs 6,745 and on firm overseas advices along with the poor offerings due to restricted imported supplies, rose steadily to the high of Rs 6,895 to end at Rs 6,880 per kg. Ready silver .916 fluctuated between Rs 6,645 and Rs 6,795. Tenderable silver gained Rs. 330 at Rs 6885 per kg.
Oilseeds weekly: An easier trend in distant castorseed contract provided the main feature of trading on the Mumbai oilseeds market last week. Trading in the September castorseed contract was absent for most of the part of the week but at the same time Ahmedabad castorseed September contract was still actively traded with prices on the rise, indicating a strong bull position.Trading in the distant December contract had been disappointing and in the absence of follow up support prices ruled easy. In edible oils, activity slackened due to the month-end consideration.
In groundnut oil the lack of demand restricted the price fluctuations which ruled quiet.
Castorseed September contract lacked activity, In the circumstances the orders for September would be negligible or none as in the previous contract.
The December contract commenced last week at Rs 1,168, against the previous close of Rs 1,180.00.In the absence of follow up support, the December contract receded to the low of Rs 1,156.50 to recover on bear covering to close at Rs 1157.50. Castor oil commercial gained Rs 4 at Rs 269 per 10 kg.
In edible oils, groundnut oil moved narrowly to be finally placed at Rs 360 per 10 kg. Palmolein recovered from Rs 255 to be finally placed at Rs 259 on better Malaysian advices.
Grains weekly: Barring a fall in inferior Punjab, wheat prices ruled steady at the Mumbai grains market last week. The prices were steady for rice and coarse grains.
Pulses attracted good fluctuations. The kharif production of moong and urad has been estimated 50 per cent lower than the normal one.
Wheat inferior moist Punjab varieties were offered further lower at Rs. 600-510 per quintal.The demand had been sluggish.
On the other hand, Ganganagar medium quality wheat was offered steady at Rs 675-700 and M.P. - 147 at Rs 650-750. Shihori pissi was offered between Rs 700 and Rs 1,100. In coarse grains, supplies were poor and the undertone was distinctly firm in jowar and bajra.
In view of limited demand, jowar H-5 was traded at Rs 525-575 and Sholapur at Rs 700-900. Bajra Gujarat small was traded at Rs 580-650. In view of very limited supplies, maize was steady at Rs 675-700.
Polished moong new was demanded at Rs 1,800-2,100 and old moong dal at Rs 1,900-2,200. Gram deshi fetched Rs 1,350-1,375 and Kabli at Rs 1,350-1,600 and gram dal Rs 1,600-1,750. Green peas ruled at Rs 1,400-1,450 for ordinary varieties and white at Rs 1,150. Tur old was offered at Rs 1,000 and new at Rs 1,100. Tur dal ruled steady at Rs 1,900-2,200.
Good demand was reported for masoor dal on export front. and buyers weree directly paying Rs 1,575-1,600 per quintal. The demand was mainly from Pakistan and Dubai.
Officially masoor is imported and masoor dal exported against the same, taking advantage of the export incentives.
