Lack of buying interest coupled with ample availability of stocks pulled Dara wheat and flour prices further down on Friday. Dara wheat and flour prices went down by Rs 30-60 for a quintal and 90-kg bag, respectively.
Poor demand for flour is a prime reason behind the lack of buying interest in the market, said Sewa Ram, a wheat trader. Flour mills are buying limited quantities and they do not want to build their inventories at current levels as wheat prices continue to move downwards and the domestic demand is also not picking up, he added.
In the physical market, dara went further down by Rs 30 and quoted at Rs 1,400-1,410 a quintal. Around 500 quintals of dara variety arrived from Uttar Pradesh and the stocks were directly offloaded at the mills. Mill delivery was Rs 1,400-1,405, while delivery at the chakki was Rs 1,410 a quintal. Traders expect dara prices to stay at current levels for the next few days, said market sources. On the National Commodity and Derivatives Exchange, wheat for October delivery decreased by Rs 8 to Rs 1,455 a quintal. November contracts went up by Rs 6 to Rs 1,437 a quintal. Spot prices on the exchange eased by Rs 9 and ruled at Rs 1,473.85.
Flour Prices: Following sluggish domestic demand for flour coupled with a fall in wheat prices, flour prices eased further by Rs 60 and sold at Rs 1,390 for a 90-kg bag. Similarly, Chokar prices too were down by Rs 20 at Rs 670 for a 49-kg bag.