MUMBAI, November 7: Gold prices bounced back while silver spurted and prices crossed Rs 6,800-mark due to acute shortage of ready stock on the bullion market here today.

Standard gold commenced Rs 10 lower at Rs 4,190 per 10 gm. on news that fresh arrivals of about 3000 gold biscuits at Mumbai Airport imported by Mineral and Metal Trading Corporation. But later on prices bounced back to Rs 4,205 on rumours that custom clearance of said cargo was delayed due to technical problems. Gold .22 carat closed Rs 5 higher at Rs 3,890 per 10 gm. in sympathy. Prices of gold biscuit (116.50 gm.) opened Rs 100 lower at Rs 49,000 but recovered before closing at Rs 49,200 per piece. In the global market the yellow metal recovered to $313.60/313.65 per ounce.

Silver .999 hardened from Rs 6,725 to Rs 6,820 per kg. Silver .916 shot up from Rs 6,625 to Rs 6,720 per kg. Industrial buying continued while thin supplies and shortage of ready stock pushed prices upward. In Delhi ready delivery was placed firm at 6,920/6,925 per kg. In the international market silver climbed to $4.96/4.97 per ounce.

G'nut oil up

Groundnut oil rose on the oil,oilseeds market here today. Castorseed and its oil also turned firm.

Groundnut oil edged up by a rupee at Rs 346 per 10 kg on the back of higher upcountry advices. In Rajkot prices jumped from Rs 512 to Rs 520 per 15 kg. on continued upcountry buying interest coupled with sluggish winter crop supplies due to unseasonal rain, it was said.

Imported palm oil moved up by a rupee at Rs 267 per 10 kg exclusive of tax. Recovery in the world market and absence of fresh inflow at Mumbai fort attributed to the recovery, dealers said. Castor oil rose by 50 paise at Rs 269.50/281.50 per 10 kg on overseas enquiries. Castorseed placed Rs 2 higher at Rs 1191/1197 per quintal.

In the futures section castorseed December delivery gained Rs 8 at Rs 1169 per quintal as fresh bull support triggered short covering. March delivery moved in both ways and settled a rupee higher at Rs 1125 per quintal. In Ahmedabad December delivery was quoted higher at Rs 1151/1152 per quintal in the kerb trading while March delivery will commence trading from Saturday, it was gathered.

Cotton improves

A better tendency was in evidence in Punjab zone goods on the cotton market.Punjab zone cotton prices were placed higher by Rs 5 to 10 a maund on lower arrivals in other centres. J-34 saw-ginned Rajasthan ruled at Rs 1740-1770, Haryana at Rs 1790-1820 and Punjab at Rs 1880-1910 spot. Bengal Deshi were placed at Rs 1135-1170. Arrivals were around 20,000 bales. Rains in MP has curtailed the arrivals in Sandhwa. Sanker ruled static on selling pressure although Kapas prices were said to be out of parity. Around 800 bales is understood to have been purchased by an Ahmedabad-based textile unit at Rs 19,871 on 28.5mm basis. Morbi Sanker ruled at Rs 20,200-20,400 and Manavadar at Rs 20,500.

Meanwhile, the latest revised crop estimate of the trade has placed the 1997-98 season crop to a substantial low level of 155 to 160 lakh bales, down from the earlier expectation of 180 lakh. Among the noticeable drop in production included Punjab zone 35 lakh, Maharashtra 40 lakh (down from 50 to 52 lakh) and Gujarat 35 to 36 lakh (down from 45 lakh) bales. The output in Karnataka and Andhra Pradesh is also likely to be lower by 1.5 and 3 to 4 lakh bales respectively.

Sugar down

An easy trend prevailed on the sugar market following slack demand.M-30 were placed at Rs 1500-1541 and S-30 at Rs 1490-1506 a quintal ex-godown, down by Rs 5. Ex-octroi checkpost, the price ruled at Rs 1485-1510 and at Rs 1470-1480 respectively. Arrivals were around 70 lorryloads.

Imported sugar was quietly steady. Brazilian ruled at Rs 1371 and Dubai/EEC at Rs 1410.

In tenders, price eased by Rs 5. M-30 were indicated at Rs 1450-1455 and S-30 at Rs 1435-1440 in Kolhapur line.

Pulses drop

An easy condition was noticed in pulses on the grains market following sluggish offtake.

Myanmar urad old lost Rs 50 a quintal at Rs 925-950 while new were placed at Rs 1000-1021, down by Rs 75. Moong Myanmar dropped down from Rs 1500-1525 to Rs 1475-1500. Australian gram shed Rs 10 at Rs 1391-1400. Green peas Canadian fell from Rs 1341-1351 to Rs 1300-1330. White peas Canadian lost Rs 15 at Rs 1021-1031.

Kabuli gram A-2 Iranian at Rs 2000, B-2 Turkish at Rs 1450-1475, Iranian at Rs 1375-1400 and C-2 at Rs 1350-1400 were weak by Rs 25.

Yarn quiet

A quietly steady trend prevailed on the yarn market. Activity was restricted.Polyester yarn grey first quality of medium-sized units 80dn weft and warp were placed at Rs 94-95 and at Rs 102-103 a kg respectively. 150dn weft were placed at Rs 84-85 and warp at Rs 90-92. 150dn single rotoset were on offer at Rs 88-90 while double rotoset were traded at Rs 92-93.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.