Soybean Prices Firm, Sugar Loses Ground

Prices were up by Rs 100-150 per tonne in markets and plant delivery condition. The undertone was strong.

Soyoil solvent was up by Rs 300 per tonne on good demand from vanaspati manufacturers. Soyoil refined was steady. The undertone was steady. Soymeal prices remained weak on limited export demand and selling was also limited. Soymeal yellow was $260-262 per tonne in export. Rapeseed extraction was $125-127 per tonne in export. Rapeseed extraction was Rs 4,300 Free On Rail (FOR) Bedibunder and was Rs 4,250-4,275 FOR Bhavnagar.

Punjab cotton remained steady at the reduced level while Gujarat varieties suffered a fresh setback on the local cotton market, dealers said. Gujarat cotton attracted fresh offerings following reports of rising new crop arrivals in the Gujarat region.

 

In spot deals Gujarat Kalyan (medium-staple) slid Rs 100 to Rs 13,200/13,400 per candy (355.56 kg) while Gujarat Sankar-4 (long-staple) fell to Rs 19,000/19,500 per candy from Rs 19,500/20,400. Punjab cotton was steady in limited activity but sentiment was subdued at the close.

Reports that the Indian government has extended the last date for the shipment of cotton quota allotted for export during the 1995/96 season upto December 31 had little impact on the market, dealers said.

Sugar prices lost ground as consumer buying slowed and improved supplies prompted light profit-taking yesterday, dealers said. Millers remained active sellers due to absence of fresh outstation enquiries.

Higher offerings by millers led to improved arrivals in the local market, one broker said. In the ready delivery sugar S-30 fell by Rs 5/10 to Rs 1,310/1,340 per quintal while M-30 slid by Rs 5 to Rs 1,340/1,380 per quintal. Sugar mill delivery moved down by Rs 10 to Rs 1,230/1,240 per quintal.

Sentiment at the close remained subdued but traders were expecting fresh physical buying in the coming days ahead of Diwali. Castorseed December delivery lost ground and fell from Rs 1,107/1,108 to Rs 1,102/1,103 per quintal on speculative offerings, dealers said.

Export demand for castoroil remained low while bulls were liquidating long position ahead of new crop arrivals, one dealer said.

New crop arrivals have not commenced yet but sentiment was subdued on sustained arrivals from old crop.

Groundnut oil remained steady at Rs 380/382 per 10 kg on stray physical support ahead of Diwali festival. Limited new crop arrivals at the reduced level also kept the market quiet. Delivery after a week was quoted at Rs 377 per 10 kg.

In Rajkot spot oil was steady at Rs 555 per 15 kg.

Tin and nickel prices extended losses on the metal market yesterday, dealers said.

Lead lost ground while other base metals held steady in a narrow trading range. Lead prices fell by Rs 100 to Rs 4,700 per quintal on increased selling pressure following reports of a price cut of Rs 3,000 per tonne announced by state-owned Hindustan Zinc Ltd.

Tin fell further by Rs 200 to Rs 35,100 per quintal on higher arrivals of the imported metal. Tin was down by Rs 200 per quintal on Thursday. Nickel moved down by Rs 200 to Rs 37,300 per quintal on the back of weak world trends.

Copper was steady at Rs 11,650 per quintal, as was zinc at Rs 6,250 per quintal in limited activity.

State-owned Hindustan Copper and Hindustan Zinc Ltd left prices of copper and zinc for November unchanged but they have now started offering discounts if buyers pay cash immediately, said Sharad Parikh, president of Bombay Metal Exchange.