Bullion recovers, oilseeds mixed

Our Commodities Bureau in Mumbai

BULLION: Both the precious metals recovered some of the earlier losses on the bullion market here during last week, dealers said here on Friday.

Standard gold moved in both ways before settling Rs 5 up at Rs 4,385 per 10 gm. Prices of gold biscuit (116.50 gm.) hardened by Rs 100 at Rs 51,400 per piece. Traders reported fresh seasonal buying for gold ahead of beginning of Hindu festival while tight supplies kept offerings limited during the week. News of recovery in the global market also arrested fresh selling of gold by local bankers and stockists, a bullion broker said.

Frequent seizures of contraband gold and tight security at Airports and also in coastal areas kept supplies of contraband gold at a low ebb during the week. In the overseas market gold looked up from $267.30 to $268.20 per troy ounce. Dollar prices in the local market however fluctuated in a narrow range and settled on a quiet note of Rs 47.11 during the week. Meanwhile silver .999 moved in both ways and placed Rs 5 higher at Rs 7,230 per kg amidst stray festival buying but volume of business was restricted in absence of fresh demand from industrial consumers. Arrivals of imported silver however virtually absent during the week. Traders reported daily inflow of 150/200 kg of raw silver from local sources. In the global market the white metal remain steady at $4.24/4.25 per troy ounce.

OIL, OILSEEDS: Groundnut oil bounced back from lower level on the oil, oilseeds market here during last week. Castorseed and its oil on the other hand suffered losses at higher level following withdrawal of fresh overseas buying while steady progress of monsoon triggered unloading by stockists here, dealers said. Groundnut oil lifted from Rs 412 to Rs 420 per 10 kg amidst renewed physical buying ahead of festival season. In Rajkot prices however closed lower from Rs 695/700 to Rs 660/665 per 15 kg following fresh offerings by millers amidst expectation of higher new crop, it was learnt.

Imported palm oil here jumped up from Rs 313 to Rs 334 per 10 kg on the back of fresh rally in the global prices coupled with brisk physical support in the domestic market, according to an Indian importer. In the overseas market palm oil shot up from $347.50 to $377.50 per tonne on continued buying by Asian and European countries. Forward deliveries were quoted at $380/382.50 per tonne.

Meanwhile castor oil reacted from Rs 285/297 to Rs 280/292 per 10 kg. Castorseed ready also fell by Rs 25 at Rs 1,250 per quintal in sympathy. In the futures section castorseed September delivery nosedived from Rs 1,286 to Rs 1,250 per quintal on heavy bull unloading following reports of setback in Gujarat market, floor sources said. In Ahmedabad castorseed September delivery slipped from Rs 1,262 to Rs 1,210 and December delivery from Rs 1,339 to Rs 1,297 per quintal during the week. Traders reported daily arrivals of castorseed at 10,000/12,000 bags while spot prices remained weak in absence of fresh shippers interest in Gujarat.