Groundnut Oil Loses Ground; Bullion Stages A Recovery

This was attributed to slightly better trend in overseas market following uncertainty about the gold sale by the International Monetary Fund (IMF).

The support at lower levels helped small recovery in prices abroad. At the same time, according to recent reports, the investment demand for Christmas and the wedding season in Asia would help modest increase in prides.

On the other hand the IMF predicted that the rising trend in commodity markets the world over had ended and the prices would drop. Meanwhile, the US-Iraq tension has had no impact in the world bullion markets. In view of the festival season the demand had been gradually picking up. Only after Shradha Paksha the festival demand would be in full swing. Stockists were cautious in retaining stocks because of the uncertainty overseas.

 

Standard mint gold opened last week at Rs 5,120, against the previous close of Rs 5,105, and on moderate demand coupled with better overseas advises moved up to touch a high of Rs 5,130 from the previous close of Rs 5,105 to end the week at the same low levels per 10 gms. In view of the Jain and Ganesh festival holidays trading was affected. Gold 22 carat after resuming last week Rs 15 higher at Rs 4,735 touched the high of Rs. 4,745 to end at Rs 4,720. Gold biscuits, officially ruled steadily at Rs 59,800 over the last week.

Activity in silver was moderate but the supplies have been comfortable due to pressure of arrivals under special licences at Ahmedabad. This hampered further rise. At the same time overseas prices in silver have been moving in a narrow range around $5 per ounce. Ready silver 999 fineness commenced last week at Rs 7,125 against the previous close of Rs 7,100 and after steep fall closed the week at Rs 6950 per kg. Silver. 916 fineness was offered Rs 100 lower than 998 fineness silver. Tenderable silver, on the other hand, was at a Rs 5 premium over the 999 fineness silver.

Oilseeds: After initial firmness, castorseed futures reacted sharply on bouts of selling pressure to close with on-balance small losses on the Mumbai oilseeds market last week. Despite weakness, a prominent bull operator refrained from accumulating further long position even at the lower levels.

The outlook of the new crop would not be as disappointing as expected earlier. Expectation of good export demand for castor oil has yet to materialise. With the rising castor oil prices it would be difficult to push castor oil exports in the world market. Besides, the inflow of castor seed was about five to 6,000 bags in Gujarat.

Castroseed September lacked activity over the week. The December delivery commenced higher at Rs 3 at Rs. 1,153 and in the absence of offerings the opening level prices started firming up on hectic bull support.

The contract thus touched the recent high of Rs 1,166, but on selling pressure it dropped to the low of Rs. 1,147.50 to end at Rs. 1148.50.

In the spot section, castorseed Madras small receded from Rs 1,130 to Rs 1,126 per quintal. Castor oil commercial after touching a high of Rs. 255.50 eased to Rs. 254.50 per 10 kg.

Edible oils: The inflow of new crop groundnut coupled with unloading of old stocks resulted in the declining trend in groundnut oil which established a new peak at Rs 445 during previous week to drop to Rs 422 per 10 kg. Rajkot tin dropped from Rs 700 to Rs 670 but recovered to 682 later. New crop groundnut would soon be marketed in big way. Palmolive was down from Rs 276 to Rs 270. The quantity of palmoleine in the city is about 55,000 tonnes.

Grains: In restricted activity, prices ruled steady to better on the Mumbai grains market last week.

In view of the rainfall at the producing centres of Karnataka, Maharashtra and Gujarat, supplies of new crop moong and urad had slowed down. The standing crop has also been damaged to some extent.

At the same time the inflow has been mostly composed of discoloured moong and urad. Other pulses ruled steady in limited activity with gram ruling steady.