Meanwhile silver .999 declined from Rs 8,000 to Rs 7,945 per kg. Silver .916 softened to 7,830 as against Rs.7,875 during last week. Industrial and seasonal buying was at a low ebb.

OIL,OILSEEDS: Bearish trend was witnessed on the oil, oilseeds market here during last week. Groundnut oil closed lower at Rs 342 (Rs.353) per 10 kg.

In Rajkot groundnut oil quoted at Rs 568/577 per 15 kg. Imported palm oil slipped by Rs 4 at Rs 201 per 10 kg. Castor oil changed hands at Rs 299/311 per 10 kg. But the undercurrent of the market remain firm on expectation that government may hike import duty on edible oil in the near future.

Castorseed ready closed at Rs 1,345 per quintalIn the futures section castorseed December delivery quoted at Rs 1,365 per quintal and there was no trading in castorseed February delivery.

Mustard oil prices have registered a steep rise of Rs 300/400 within last three days touching year's high at Rs 3400/3500 per quintal. Current prices are higher by Rs 700/800 per quintal when compared with those of Rs 2600/2800 prevailing a month ago.

The sudden spurt in prices, according to well informed sources, is mainly attributed to reports of drought conditions prevailing in Rajasthan, the largest mustard seed producing state, and damage to crops caused by adverse weather conditions in the states of Madhya Pradesh and Gujarat. Reports reaching here pointed out that plants sown in these states have dried up due to excessive hot weather and fresh sowing operations have yet to commence.

As per trade estimates, production of mustard seed in Rajasthan during the year 1999-2000 has declined by 20 per cent to around 20.0 lakh tonnes from 25.0 lakh tonnes in 1998-99. In Uttar Pradesh to 7.00 lakh tonnes from 9.00 lakh tonnes whereas the all India production of mustard was estimated lower around 51.0 lakh tonnes as against 59.5 lakh tonnes in the same period.

Consequently affluent farmers and big stockists have cornered stocks of rapeseed/mustardseed affecting its easy availability to oil millers and crushing units. Daily arrivals of lahi and mustard seed have dropped from 4000/5000 bags to 800/1000 bags in the local market. Reflecting this lahi and mustard seed prices too have recorded a big jump from Rs 1050/1150 to Rs 1400/1500 per quintal in the last three days.