MUMBAI, December 20: Gold prices bounced back trimming the recent losses on the bullion market during last week. Silver also hardened by Rs 200 on shortage of ready stock and buoyancy in the world market.

Standard gold jumped up from Rs 3,910 to Rs 4,085 per 10 gm. Gold .22 carat spurted from Rs 3,615 to Rs 3,780 per kg. Prices of gold biscuit (116.50 gm.) shot up from Rs 45,700 to Rs 47,800 per piece. Physical demand improved at the reduced level for ensuing wedding season while eased supplies and firm global advices pushed prices sharply upward during the week.

Setback in the dollar prices against Indian rupee after recent rally had little impact on the bullion market during the week. In the global market gold prices climbed up from $283.50 to $289.50 per ounce.

Silver .999 shot up by Rs 200 at Rs 8,325 per kg. Silver .916 rose by same margin at Rs 8,225 per kg. Industrial and seasonal buying continued while thin supplies coupled with lack of ready stock and firm Delhi and overseas advices attributed to the spurt in prices, dealers said.

In the global market silver placed higher at $6.08 as against $5.90 per an ounce earlier following news that stock of silver in the New York market has fallen to 12-years lowest level, dealers said.

Oil, oilseeds

Groundnut oil spurted sharply on the oil, oilseeds market here during last week. Castorseed and its oil forged ahead on overseas support. Groundnut oil advanced from Rs 350 to Rs 364 per 10 kg on the back of hectic seasonal buying while winter crop arrivals remained slow due to cold weather and unseasonal rain in the producing centres.

In Rajkot prices placed at Rs 540/545 as against Rs 515/520 per 15 kg. Imported palm oil climbed up from Rs 280 to 287 per 10 kg exclusive of tax on the back of rally in the world market. Absence of fresh arrivals at Mumbai port and upsurge in the dollar value kept offerings by importers at a low ebb during the week.

Castor oil closed Rs 2 lower at Rs 281/293s per 10 kg on overseas enquiries. Castorseed ready finished Rs 10 higher at Rs 1,247/1,253 per quintal.

According trade sources overseas buyers were demanding Indian castor oil at the rate of $710/715 per tonne.

Cotton

Following improved buying support, cotton price presented an improved stance. The Cotton Advisory Board (CAB) has estimated the current season crop at 169 lakh bales.

The mill demand became active turning the sellers reserved. The prices looked up as a result. Punjab zone J-34 saw-ginned prices hardened by Rs 20 to 25 a maund. J-34 good average rose to Rs 1750-1870 and cart-selection to Rs 1900-1965 spot. Bengal Deshi shot up by Rs 40 at Rs 1300-1340.

Sanker netted gains of Rs 500 a candy and ruled at Rs 19,500-20,500. However, the prices were indicated lower by Rs 100 on demand losing momentum at high levels. MP cottons were also up by Rs 100 to 200 in sympathy. Y-1 ruled at Rs 17,700-18,000, LRA at Rs 17,800-18,500, H-4 at Rs 18,700-19,200 and MECH-1 at Rs 19,300-20,000.

Yarn

The polyester yarn price sought further low levels on the yarn market during last week. Other items were quiet.

On steadily worsening marketing scenario coupled with relentless pressure of acute liquidity crunch, bearish trend in polyester yarn has aggravated. Grey first quality of medium-sized units 80dn weft fell from Rs 88-90 to Rs 85, warp from Rs 105-106 to Rs 95-98, rotoset from Rs 94 to Rs 88-90 and micro rotoset from Rs 103-105 to Rs 100 a kg. Generally laggard 80/1000dn and 80/1400dn remained static at Rs 135-145 and at Rs 145-160 respectively. In the case of 150dn, weft dipped from Rs 78 to Rs 76 and warp from Rs 88 to Rs 85-86. Single rotoset at Rs 85 and double rotoset at Rs 88 were static. Reliance Industries Ltd (RIL) has cut the price of 80dn weft by Rs 3 at Rs 90 and that of rotoset by Rs 5 at Rs 95 effective from last Monday.

Grains

Spurt in the price of wheat highlighted trading on the grains market. Rice ruled steady.

The arrivals of wheat dropped down to a trickle due to sharp rise in the quotations in the producing centres owing to active buying support from other states. North Gujarat wheat came in for very active support from the southern states. These developments had put the local market wheat price out of parity with the producing centres.

The demand turned very active and the prices started skyrocketing. Prices zoomed ranging from from 135 to 200 a quintal. Milling wheat moist peaked Rs 790 and good quality Rs 800 for Khopoli delivery. Among other wheat, Ganganagar were up at Rs 900-925, North Gujarat at Rs 790-900, Maharashtra at Rs 825-900, MP 147 at Rs 900-1100 and Sarbati at Rs 1100-1500.

Rice ruled steady. AP Masori and Kattar were traded at Rs 900-925 and at Rs 925-950 respectively. SLO ruled at Rs 925-950. Cultured Kolam AP were in demand at Rs 1075-1125.

Sugar

Sugar price registered a sharp fall following liberal release of free sale quota for the January-March quarter of 1998. The immediate cause for the sharp fall in the price was January 1998 quota of 7.25 lakh tonnes. this was not only higher than the 1997 January quotas of 6.50 lakh tonnes but also higher by 25,000 tonnes than the trade expectations. Together with the ready stock of 50,000 tonnes and about 28,000 tonnes on arrival of imported sugar this was considered to be quite on the high side having regard to the shrinkage in the offtake due to winter.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.