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Window-Dressing Time

speculative activity from the futures to the ready section. Groundnut Karad bold moved up by 13 points to close at Rs 212 while Khandesh quality showed a net gain of Rs 12 at Rs 215. Groundnut oil moved from Rs 43.50 to Rs 45.20. Castor- seed Madras and Kanpur bold each recorded a gain of Rs 8 at Rs 156 and Rs 154, respectively. Groundnut expeller and groundnut deoiled witnessed a further extension of the firm trend by recording a rise of Rs 25 and Rs 7, respectively, at Rs 685 and Rs 520. Every item in the ready oilseeds section closed the week at the highest level, unlike in the futures where a modest setback from the week's best levels was noticed at the close.

Easy Spell

December 31, 1966 tures to the spot section. While the turnover in the futures section was limited to stray deals, the activity in the spot market, particularly in groundnut, was very keen as speculators tried to rig up the prices of groundnut oil. Meanwhile, as the bulls in castor and linseed had fulfilled their obligation in respect of margins by paying Rs 45 lakhs, the shorts tried to cover a part of their sales thus imparting a hardening trend to a limited extent to the prices in the futures section. Castor April closed the week with a net gain of only 63 paise at Rs 138.50, while linseed April remained unchanged at Rs 162.50 Cottonseed January moved up by Rs 2 to close at Rs 77.

Prospects Uncertain

December 24, 1966 Focus on Cotton Imports AS MOST varieties of new crop cotton are available about the new ceiling prices, the textile industry has now turned its attention to the prospects of cotton imports. Although the Union Commerce Minister has indicated the Government's intention to import at least 9.25 lakh bales of foreign cotton, not much has been since heard as to how and when the imports are going to be effected. Much will depend on how quickly the Government negotiates with the U S Department of Agriculture for P L 480 cotton imports. Serious efforts in this direction are expected some time in January. At the moment longer staple cotton prices are ruling very firm.

On the Brink of Easiness

ed. The millers were also given the option to preserve the stock of levy in either groundnut or groundnut oil or both. The Food Corporation of India will commence lifting the pending stocks of groundnut oil very shortly.

The Costly Strategy

culative activities of the operators in the futures market. However, towards the end of the week, the apprehensions of a possible Governmental intervention pared the gains to some extent. Reflecting the tight supply position in the ready market, the spot quotations showed marked improvement at the close, gains being shared by almost all the items of oilseeds and oil.

Hardly Tight

Traders Prepare to Meet the Threat WITH Manubhai Shah's statement in the Lok Sabha on November 25, questioning the wisdom of the mill industry's decision on block closure and making clear New Delhi's intention to retain the ceiling on cotton prices and the control on cloth, the stage is now set for the growers and traders to agitate for business transactions determined by the supply and demand position of the commodity. If requisitioning is going to be the chief method of making cotton available to the mill industry, pending a faster tempo of. arrivals, there will be little scope for the growers and traders to obtain the prices they have been accustomed to till now.

Demand Fizzles Out

Demand Fizzles Out THE TIGHTNESS stemming from the Divali demand for funds has ended and easy conditions have re- emerged in the inter-bank call money market in Bombay. The call rate remains unchanged at 4 per cent per annum and the market tends to reflect lenders over.

Borrowers Over but Rate Unchanged

November 19, 1966 turnover at the moor at session on the new Samvat year 2023, brisk business was put through in the ready oilseeds market. Groundnut oil and groundnut seeds were in the limelight with moorat deals of 700 tons and 4,000 bags, respectively, at advanced rates.

Pre-Divali Demand

Pre-Divali Demand PRE-DIVALI demand for funds emerged in the inter-bank call money market in Bombay last week. The supply tended to fall short of demand, but the consequent tightness made no impact on the call rate, which remained unchanged at 4 per cent. Supply fell short because the lending banks' surpluses were maintained in 3.50 per cent Treasury Bills. Lenders had no incentive to discount their holdings as borrowers refused to pay more than 4 per cent for day-to-day funds. Borrowers' refused because they too have sizeable investments in Treasury Bills which can be discounted to make good the shortfall between suppply and demand. Presumably, that is exactly what the borrowers did.

Tight Prospects

Daxin Gujarat Cotton Marketing Union, Surat, that inasmuch as the general price level has risen by about 25 per cent since the fixation of cotton ceilings in 1965, the growers' plea for a 15 per cent rise in the ceilings cannot be held unjustifiable. But then, from the point of view of the Government, the crucial question is whether the mill industry will not also seek a commensurate rise in the textile multipliers. Such a demand from the industry is but inevitable, especially as the cost of production of cloth has been steadily mounting up particularly since devaluation, A compromise between the demands of growers and those of the industry would be to ensure that the farmers get the current ceilings prices throughout the season and that the industry obtains its cotton requirements without difficulty at prices which they are already accustomed to pay.

Easy Trend Continues

OCTOBER, the last month of the slack season, usually witnesses a slightly higher demand for bank credit. This October too, the demand has risen, but the impact of the rise has not been felt by the inter-bank call money market. Most banks have a sizable liquid position, thanks to the rapid growth of deposits during the current slack season. The easy trend continues in the interbank call money market in Bombay where the call rate has been maintained at 4 per cent, with stray deals taking place at 3.50 per cent.

Prospects Uncertain

bank call money market in Bombay remain unaffected by the proximity of the ensuing busy season, which opens technically on November 1. There is hardly any fresh demand for funds as the demand for bank credit remains at its seasonal low Lenders of day-to-day money continue to find it difficult to lend in the market, where the call rate remains unchanged at 4 per cent, with stray transaction for small amounts being done at cheaper rates.


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