Silver, Groundnut Oil Move Up; Pulses Range-Bound

A divergent trend was witnessed on the Mumbai bullion market last week. While silver flared up, gold, on increased supplies, ruled quiet and dropped below the Rs 4,100 mark.

Silver, on firm overseas advices, crossed the Rs 8,500 mark. This was mainly attributed to the decline in fresh supplies and firm overseas advices. At the same time, higher levels met with resistance from the buyers and the white metal reacted to lower levels during the later part of the week. The inflow in gold, both from direct import by banks and NRIs, had gone up.

Silver had been firming up in the overseas market and prices had been moving up much before the end of the year. Silver had gone up to an eight-year high at $6.34 per ounce in New York. Now, the bull syndicate is likely to bring the prices to the 4 8 per ounce level in the new year.

 

Gold moved up but was finding resistance around the $ 296 per ounce level. According to a prominent trader, yellow metal prices in 1998 will fluctuate between $ 275 and 350 per ounce.

The demand in gold was moderate and was confined mainly to buying by black-money holders who declared the same under VDIS .With the scheme likely to end this month-end, fresh purchases are expected to drop.

The demand for the marriage season would start after January 15. Supplies continued to pour in. 191 smuggled biscuits, valued at Rs 93 lakh, were seized recently at Sahar airport. At the same time, good inflow was also reported in Kerala by the NRIs.

Gold standard commenced at Rs 4,140 as against the previous close of Rs 4,080. In early trading, it went up to touch a high of Rs 4180 per 10 gms on higher overseas advices. It later dropped to close at Rs 4,080 on Friday.

Gold 22 carat fluctuated between Rs 3,865 and Rs 3,775. Gold biscuits fluctuated between Rs 48,900 and Rs 47,700 per 10 tolas. Silver .916 finesse shot up from the early low of Rs 8,235 to Rs 8,440.

Oilseeds: After starting off on a promising note, castorseed futures faltered to close with on-balance small losses on the Mumbai oilseeds market last week. Even in futures, bulls preferred to liquidate long position at higher levels. Activity in castorseed futures had been very limited, while Ahmedabad reported brisk activity with buyers and sellers getting favourable prices. Hence, many traders are shifting their positions to Ahmedabad.

Prices of edible oils had been on the rise following limited supplies from Saurashtra. At the same time, palmolein also firmed up on higher Malaysian palm oil advices coupled with good demand from upcountry centres.

Groundnut oil moved up from Rs 360 to Rs 367 on Friday. Rajkot tin was up from Rs 540 to Rs 548. Palmolein, too, rose from Rs 285 to Rs 298 on last Friday.

Grains: After the recent flare up, prices ruled quiet on the Mumbai grains market last week. The recent rise was due to damage to the standing crop following untimely rainfall and the announcement of permitting exports of pulses in 5-kg packs.

Wheat inferior Punjab was in good demand at Rs 800 by mills, and the price ruled around Rs 800-825 per quintal. While Maharashtra wheat fetched Rs 850-950, Madhya Pradesh-147 fetched Rs 850-1,000 and Shihori pissi was in demand at Rs 900-1,500 per quintal.In view of high prices, buyers were cautious and the sentiment was slightly easy.

Rice prices ruled quiet on increased inflow and slack demand. SLO ruled at Rs 900-1,100. Gujarat-17 new ruled at Rs 1,100-1,300 and old at Rs 1,600-1,700. Kolam new fetched Rs 1,500-2,000 and old got Rs 1,700-2,000. Basmati was demanded between Rs 4,000 and Rs 5,500.

In coarse grains, jowar Sholapur was in demand at the firm rate of Rs 700-1,000 owing to paucity of supplies. At the same time, jowar H-5 ruled steady at Rs 450-500 and H-9 at Rs 525-550. Bajra Maharashtra was demanded between Rs 500-1,000 and Gujarat was steady at Rs 600-750.

Among pulses, prices were quiet. Gram deshi was offered at Rs 1,850-1,900, gram dal standard at Rs 2,200-2,400 and kabli gram at Rs 1,800-2,000. Moong ruled firm at Rs 2,500-2,700 and moong dal at Rs 2,400-2,600. Urad fetched Rs 1,400-1,500 and urad dal was at Rs 2,100-2,300.

Export demand was good for most of the dals. With increase in prices, imports are expected to show a substantial increase in the coming days.