MUMBAI, June 1: Mixed trend was observed on the bullion market during the week. Silver prices declined on poor industrial support while gold improved on good seasonal buying.

Silver ready of .999 fineness resumed firm at Rs.6885 and hardened further to touch Rs.6930 on brisk industrial support coupled with better New York advices. Later, on withdrawal of support, it declined to close at Rs.6840, revealing a fall of Rs.35 from the last close of Rs.6875. Raw silver .916 fineness opened steady at Rs.6785 and rallied up to Rs.6830 on increased industrial enquiries. Thereafter, on poor followup support, it fell to terminate at Rs.6740, showing a loss of Rs.45 from the last week's level of Rs.6785. Tenderable silver commenced slightly better at Rs.6890 and rose further to Rs.6935 on good industrial buying. Subseqently, on lack of support, it dropped and ended at Rs.6845, disclosing a fall of Rs.35.

Standard gold started better at Rs.4770 and on day-to-day seasonal demand, rose further to Rs.4780 and ended at Rs.4770, displaying a gain of Rs.5 from the last week's close of Rs.4765. 22-carat gold, however, moved narrowly in the range of Rs.4410 and Rs.4420 and closed at Rs.4410, showing no change from its last week's close. Ten-tola gold bar of .999 purity started Rs.100 higher at Rs.55,800 and moved in a restricted way and closed at Rs.55,800, showing a gain of Rs.100 from last Saturday.

Oilseeds and oilsPrices finished weak on the oilseeds market during the week ended May 31 owing to factors such as poor seasonal demand, lower prices in the producing centres, lack of industrial demand, poor exporter enquiries and increased arrival. Upcountry advices were also weak.

In the edible section, groundnut oil resumed lower at Rs.360 and moved down further on poor seasonal demand coupled with lower advices from producing centres and ended at Rs.358, showing a fall of Rs.3, from the last week's close of Rs.361.

Groundnut bold started steady at Rs.1890 and after moving steadily, dropped to Rs.1880, revealing a loss of Rs.10 from Rs.1890 previously.

Palm oil opened slightly better at Rs.278, but soon fell to Rs.275 on increased arrival. Thereafter it tended to look up to Rs.277 and later settled at Rs.276 against the last week's level of Rs.277.

In the industrial section, castor oil commercial started weak at Rs.248 and gradually dropped on poor support from soap manufacturers to Rs.247 against Rs.249 last week.

Castorseed ready Madras also opened subdued at Rs.1094 and declined further on poor enquiries from exporters and leading operators to settle at Rs.1094 from Rs 1099 last week.

However, linseed oil showed no change from the last week end at Rs 288 after moving in the range of Rs 283 and Rs 288 on support from the paint industry. Linseeds ready bold was steady at Rs 1300.

In the futures market, castorseed September contract commenced weak at Rs.1145.50 and fell to Rs.1141 on lack of exporters demand. Later, on revival of buying, it recovered to close at Rs.1143, still showing a fall of Rs.13 from the last close of Rs.1156. June contract was untraded during the week.

Delhi Grains and pulses:

Demand in pulses remained sluggish during the week and barring wheat Sharbati of MP, an easy tendency was witnessed on the local grains and pulses market during the week.

Despatches of wheat to the South and Maharashtra were made in the beginning of week by railway rakes and trucks, but daily arrival of wheat from the neighbouring states climbed upto 35,000 bags coupled with slack demand from flour millers because of power cut, consequently, wheat dara climbed down to Rs 500-520 from Rs 515-528 a quintal. On good demand in MP in wheat Sharbati from Mumbai, Pune buyers, its prices went up by Rs 50 at Rs 700-950 a quintal on firm MP advices.

Procurement of wheat by the official agencies upto May 29, went upto 81.50 lakh tonnes. Bonus of Rs 60 a quintal on wheat to the farmers is likely to be continued after June 10, therefore, official procurement is expected to cross 100 lakh tonnes mark, say the local traders. Milling quality wheat in MP was reported to be ruling lower at Rs 460-490 a quintal. Roller flour mill atta, maida and suji dipped by Rs 10 at Rs 500, Rs 550 and Rs 600 per bag respectively in sympathy.

On imposition of new CRS cess on Indian basmati rice by the European Union, demand from exporters went down, consequently, common basmati rice declined by Rs 50 at Rs 2900-3200 a quintal. The Government allowed import of coarse rice coupled with slack demand from Eastern Indian buyers, rice permal dipped by Rs 10-15 at Rs 790-900 a quintal as they were meeting their demands from Raipur in MP. Export of rice from India was hit hard, as China, Vietnam and Pakistan were offering rice at rates lower than India.

On inflow of new summer moong from UP and Haryana coupled with import of rajmash from China, moong and urad from Rangoon, gram from Australia and kabligram from Turkey, the local market was flooded with pulses as in the past two weeks, about 150 containers of imported pulses were reported to have landed in Delhi, consequently, kabligram suffered a sharp setback of Rs 150-200, peas climbed down by Rs 25-75, rajmsh chitra tumbled down by Rs 100 and urad and moong plummeted by Rs 75-100 a quintal. Similarly, masoor was quoted lower by Rs 125 and arhar slided down by Rs 25-75 per quintal. Pre-monsoom showers were reported good for the sowing of pulses. Gram Rajasthani, on unloading by the stockists went down by Rs 55 at Rs 1340 per quintal.

Among coarse grains, barley showed improvement on support from bear malt plant of Haryana and Punjab. Further fall in maize was arrested on good demand from Punjab and Haryana poultry feed units. Bajra and jowar prices remained quiet while white gowar climbed down by Rs 35 at Rs 1565 for want of speculative support.

Sugar

The local gur and sugar market displayed a mixed tendency during the week.Production of sugar till March this year was down by 17 lakh tonnes to 122.50 lakh tonnes and on good local as well as upcountry demand, new sugar Mawana marked upto Rs 1460 from Rs 1430 a quintal. Similarly, mill delivery sugar prices of Titabi, Simbhauli, Dauralla, Devband etc. mills ruled firm.Market sentiment was further fuelled as the Union Agriculture Minister said that, at the end of September, there would be shortage of about 10 lakh tonnes levy sugar.

In the opinion of Indian sugar industry, production of sugar this season is likely to climb down to 128 lakh tones from 164 lakh tonnes.

However, in view of opening stock of about 80 lakh tonnes, there would be opening stock of about 70 lakh tonnes sugar at the end of September despite shortage of levy sugar.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.