A mixed trend was witnessed on the Mumbai bullion market last week. Gold recovered, crossing Rs 4,400 mark but silver on pressure of imported receipts receded but the declining trend was arrested following encouraging overseas advices. Both gold and silver on international markets recovered to show modest improvement. Gold was up on hopes of good demand from Asian markets in view of forthcoming festival season, followed by marriage season.
London gold, once again, recovered from the low and $ 320 per ounce level remained intact indicating that unless fresh bearish development took place, the prices would slowly on the rise. On the other hand, silver still was having strong position, once again touching the crucial level of $ 4.80 per ounce. Once silver would turnout of the level it would gradually be touching $ 5 per ounce level.
Standard mint gold commenced steady at Rs 4,390 and in limited activity eased initially to the low of Rs 4,380. On higher overseas advices, coupled with limited selling pressure from South India, values improved to cross Rs 4,400 at Rs 4420 to end at Rs 4410. Gold 22-carat fluctuated between Rs 4,050 and Rs 4,090 per 10 gms. Gold biscuits, 10-tolas, 51,400 to Rs 52,000.
Ready silver. 999 fineness resumed last week Rs 10 higher at Rs 6,830 but on imported supplies of about four tonnes, receded to Rs 6,765 to end at Rs 6825 . Silver .916 fineness fluctuated between Rs 6,730 and Rs 6,665 per kg.
The demand here was affected due to the `Shrada Paksha' and now next week the demand for festival season would start. Stockists still keep aloof accumulating stocks on apprehension of the announcement of the liberal policy by the Central government. Once the hurdle is over the activity would be normalised. The intention of the government is to free the import of gold so that the currency will be automatically free in due course. However, the timings will have to be decided after consultations with the department concerned. With certain safeguards imports under the scheme would not have much impact on the price level which will only be governed by the international prices.
Oilseeds: Wide fluctuations in edible oils was the highlight of trading in the Mumbai oilseeds market last week. Castorseed futures receded after a firm trend on lack of follow up support at higher levels. Ahmedabad advices were discouraging and the offer price was Rs 20 lower than in the city
Castorseed September contract remained untraded throughout the week The December delivery commenced at Rs 1,167, against the previous close of Rs 1,165 and firmed up initially to the high of Rs 1,172 .50 but in the absence of follow up support coupled wit lower Ahmedabad advices receded to close at 1,162.50. Ready Castorseed Madras small touched the Rs 1,200 mark but was weakened following selling pressure to end at Rs 1,190 per quintal. Castorseed oil commercial was demanded at Rs 270 but was finally placed at Rs 268.
The estimate of oilseeds crop in general and groundnut in particular has been officially said to be lower than the current season due to poor rainfall in Andhra Pradesh and parts of Maharashtra. Groundnut Gujarat crop has been excellent with one primary estimate above 21 lakh tonnes.
In groundnut oil hopes of a larger crop has been on the decline with the rainfall hampering supplies and likely damage to the standing crop. Thus the prices have firmed up. The rise and fall of Malaysian palm oil prices and the currency there have reflected on the palmoline prices which shot up sharply but receded on offerings.
Palmoline commenced the week with a jump of Rs 10 at Rs 274 but on offerings by stockists declined to Rs 266 to end at Rs 268. Ground oil also recovered from the early low of Rs 328 to Rs 340 to end the week at Rs 338 per 10 kg.
Grains: A mixed tendency was noticed on the Mumbai grains market last week. A further fall in inferior wheat provided the main feature of trading while rice and coarse grains were steady in limited activity. Receipts of imported Australian wheat on Mumbai port aided the declining trend. Punjab moist inferior wheat dropped sharply below Rs 600 mark at Rs 580-600 per quintal. Ganganagar medium quality wheat ruled easy at Rs 700-725 and MP -147 at Rs 800-1,200.
Activity in rice was at a low ebb. With the rainfall in Andhra Pradesh rice crop would be saved to large extent. New crop arrivals of rice in Gujarat and Maharashtra would start after a fortnight. However, recent rainfall in Gujarat would delay the receipts. SLO old was traded steady at Rs 900-1,000 and new at Rs 850-875. Gujarat-17 fetched Rs. 1,600-1,700 and kolam at Rs 1,700-2,200. Basmati was steady at Rs 3,800-4,300. In coarse grains, jowar Sholapur was quiet at Rs 600-800 but H-5 was steady at Rs 525-575 and H-9 at Rs 600-625. The demand was at a low ebb. Bajra was steady with Maharashtra offered steady at Rs 500-525 and Gujarat at Rs 525-550. U P bold ruled at Rs 700-1,000. Maize was traded at Rs 675-700.
However, in pulses gram moved up further while other pulses ruled steady in limited activity. Among pulses, gram recorded a further rise of Rs 25 over the last week on good demand and higher advices form producing centres. Gram deshi was in demand at Rs 1,425-1,450 and gram dal at Rs 1,750-1,850. Kabli gram was demand at Rs 1,500-1,675.
On the other hand other pulses were held steady in thin trading. Besides due to the protest closure for two days, general interest was lacking. Traders were thinking of an indefinite strike against the increase in cess. Moong polished was offered at Rs 1,800-2,200 and unpolished at Rs 1,600-2,000. Moong dal ruled steady at Rs 1,900-2,200.
Urad fetched Rs 971-1,000, urad dal Rs 1,400-1,600, tur Rs 1,000-1,100 and tur dal at Rs 1,800-2,300 per quintal.