Silver On A High, Gold Rebounds, Pulses Skyrocket

A flare up in silver, crossing the Rs 8,300 mark, highlighted trading on the Mumbai bullion market last week. This was partly due to firm overseas advices alongwith the paucity of supplies. The demand was good because of the marriage season. At the same time gold, too, after a pretty long time crossed Rs 4,000 mark over the week.

The demand for marriage season would pick up now after January 15. Meanwhile reports from overseas has been bullish with silver after the recent drop regaining to cross the $6 per ounce level.

With the approaching Christmas, activity would slow down and silver would be likely to rise up to $7 per ounce next year, according to overseas analysts.

 

As far as silver is concerned, the sentiment is distinctly firm but in gold the traders are still uncertain as they fear sale by the Central Banks. Gold had been depressed since the time it rose to the high of $290 and dropped to $285 per ounce. Now expectations would be that gold would fluctuate between $280 and $290 per pounce level.

Gold standard opened last week at Rs 3,910, a previous close but on higher overseas advices coupled with moderate demand, values crossed Rs 4,000 mark at Rs 4,015 on Friday last to end the week at Rs 4085 per 10 gms. The demand was picking up at lower rates as overseas advices were better.

Sellers were reserved expecting start of marriage season demand after third January 15. Gold 22 carat fluctuated between Rs 3,615 and Rs 3,715 Friday last. Gold biscuits rose from Rs 45,700 to Rs 46,500 on Friday.

Activity in silver was fairly good as overseas advices were very encouraging. At the same time supplies have been limited. Ready silver .999 fineness resumed last week Rs 45 lower at the weeks low of Rs 8,080 and shot up crossing Rs 8,300 mark at Rs 8,320 on Friday to end the week at Rs 8325 per kg. Silver .916 fineness fluctuated between Rs 8,000 and Rs 8,220 on Friday last. Tenderable silver after starting at the low of Rs 8,085 rose on Friday to Rs 8,325 per kg.

Grains: A skyrocketing of pulses prices provided the main feature of trading on the Mumbai grains market last week. Announcement of pulses exports in 5 kg packings coupled with the unfavourable weather conditions had contributed to the flare up in prices to a very large extent.

According to trade the recent rainfall had adversely affected the rabi crop outlook which is likely to result in steep fall in the production of pulses and coarse grains. At the same time, prices of wheat and coarse grains also firmed up. With the inflow of the new crop, rice prices had been steady to better.

The market sentiment had been bullish and traders are predicting further rise in prices, unless some remedial measures are taken by the authorities concerned at the earliest. Wheat prices firmed up by about Rs 50, despite supplies from Punjab. Punjab wheat was traded at Rs 780-785. Maharashtra varieties were offered at Rs 850-950 per quintal. M P-147 ruled at Rs 850-1,000 and Shihori Pissi at Rs 1,000-1,500.

Despite the increased inflow of new crop rice, prices ruled firm for old varieties. New crop rice ruled quietly steady. Gujarat-17 new was traded at Rs 1,300-1,350 and old at Rs 1,600-1,700. Kolam new ruled at Rs 1,600-2,000 and old at Rs 1,700-2,000. SLO was in demand at Rs 900-950. In coarse grains prices firmed up by Rs 50 in jowar and bajra on fear of loss of rabi coarse grains at some of the producing centres. Jowar Sholapur was in demand at Rs 600-900, H-5 at Rs 450-500 and H-9 at Rs 525-550.

Among pulses, prices had been rising after the announcement of the export policy. Gram, tur and masoor dal flared up by about Rs 300-500 per quintal. At the same time reports of considerable damage to the standing pulses crop aggravated the situation.

Gram shot up by Rs 200 over the last week at Rs 1,900-1,950, gram dal to Rs 2,400-2,500 and kabli gram to Rs 2,000-2,500. At the same time, peas green was in demand at Rs 1,400-1,700 and white at Rs 1,250, gaining Rs 100.

Tur dal was in good demand with prices going as high as Rs 2,200-2,800 and masoor dal at Rs 2,100-2,200.

Oilseeds: A distinctly firm tendency in edible oils provided the main feature of trading on the Mumbai oilseeds market last week. Castorseed futures ruled better but activity was limited. It was indicated that in view of the recent rainfall and cold wave the inflow of groundnut at the producing centres has been hampered.

The crop is likely to be damaged. In view of favourable start of the rabi sowing, good output could be expected but traders were cautious. Slowdown of the inflow of castorseed also aided the bullish trend in both futures and spot section.

A prominent shipper had long position in castorseed futures and hence every fall came to support the market. Besides, spot advices were also steady to better as supplies dropped. However, export demand for castor oil remained at a low level and no advantage of the weakness in rupee had been availed off, so far.