October 8, 2001	Monday	Rajab 20, 1422

THE Karachi wholesale commodity markets showed quietly mixed trend during the preceding week as there was no panic-buying on any of the essential counters despite fears of the US attack on Afghanistan.

The continued US ultimatum to Taliban to handover Osama bin Laden did, however, create a war-like situation on the markets curtailing the daily size of the physical business. Most of the brokers and commercial houses awaited the latest news from the Afghan front rather than indulging in speculative buying and selling to create panic in the market.

Physical business was the only victim in the absence of any strong demand from any quarters as supplies were enough to meet the ready demand — thanks to steady arrivals from the upcountry markets, dealers said. There was a relative quite on the export sector as in the absence of fresh import orders and reports of holding back of some of the L/Cs have considerably slowed down the physical shipments over the week, they added.

Rice shipments remained at a standstill as no rice loader arrived over the last two weeks to lift the cargoes under the old contracts. It could well mean that the previous shipment schedules have already been met. However, prices of all types of rice remained stable mainly on the local demand indicating that the relative quiet on the export front did not trigger selling from the local stockists despite reports of steady arrivals of the new crop. Rice exporters were worried over the steep decline in the value of the dollar, which could make exports more expensive if the adjustments were made to lower the value of the rupee, the dealers said.

Other essential items followed rice sector but most of them did not show major changes and were mostly traded at the last level under the lead of sugar. Bulk of the activity was again centred around some types of pulses, notably the imported stuff as lower levels attracted strong support both from the local wholesalers and the Punjab traders. Price of gram whole, gram dal, peas, beetle all suffered fall ranging from Rs25 to 100 per bag but the largest decline of Rs50 to 300 per bag was recorded in the imported Masoor. Other types were held unchanged.

Prices of rice varieties were quoted quietly easy followed by the reports of slow new crop arrivals from the Sindh markets and slack export demand. Price changes on this counter were fractional as in the absence of demand from exporters, in the wake of falling import orders, prices remained pegged at the last close for both fine varieties of Basmati and IRRI types. Basmati new was an exception, which came in for stray selling owing to steady new crop arrivals from the Sindh markets and was marked down by Rs25 to 50 per bag of 100kg.

Sugar remained under pressure and fell by Rs10 on selling by mills owing to larger unsold stock of 0.8m tons lying with them. Gur and Desi sugar were held unchanged for want of demand. Guar finished unchanged on stray local support, so did the maize, jowar and bajra, which were traded at the previous levels.

Wheat ruled steady despite reports of active selling by the growers and despite the slack mill-demand it managed to finish at the previous level. Oilseed sector showed quietly steady trend as prices of major seeds were again quoted unchanged at the previous levels. Major seeds including the cottonseed, rapeseed, castorseed and til were held unchanged at the previous level amid moderately active trading.

Oilcakes market showed steady trend as the price of both cottonseed were marked up by Rs5 each on active local demand and slow arrivals from the Sindh markets. —M.A.