November 5, 2001	Monday	haba’an 18, 1422

BARRING few upward changes in some essential items, relatively quieter conditions prevailed on the Karachi wholesale commodity markets as commercial houses and brokers were not inclined to build-up long stock positions due to the fears of pressure on supplies.

The trading activity on major commodities markets was normal and there were no reports of panic-buying from any quarters as the arrivals from the upcountry markets remained fairly steady.

However, some of the essential items did show increase under the lead of sugar which remained in strong demand and rose sharply amid conflicting reports about the buyers.

Some commercial houses claim that the local brokers were buying the commodity, from the local market on behalf of their external agents, to be transported to some neighbouring country.

Some others say the commodity is finding its new outlets in the war-ravaged Afghanistan where the supplies are dwindling owing to extensive bombings by the US-led coalition.

The stocks lying in the godowns of sugar mills and commercial houses have declined to half a million tons from the previous million tons, which show a larger outflow instead of a normal 0.100 million tons, monthly average figure, the dealers said.

With the new crushing season just a couple of weeks away, the unsold stock of half a million tons could form a viable buffer stock after meeting the local demand before the arrival of the new crop production, they added.

But on the other hand other essential items showed orderly price movements depending largely on the supply and demand factors.

The market rise was led by sugar, which posted a sharp gain of Rs70 per bag of 100kg on active local demand prompted by reports of fall in arrivals from the upcountry markets.

But later selling followed by the reports of steady arrivals pushed it down by Rs5 per bag of 100kg.

Desi sugar and gur on the other hand fell on selling amid reports of new crop arrivals from the upcountry markets, notably Sindh trading centres.

Pulses showed quietly firm trend amid slow ready offtake but peas, gram dal, and some others came in for stray support and were quoted higher amid modest ready offtake.

Moong whole, masoor imported, tuver and urad on the other hand were exceptions, which suffered decline ranging from Rs25 to 75 per bag of 100kg on the renewed selling and the slackened demand from the Punjab traders.

The rice sector also followed the lead of other essentials as the price of basmati, IRRI-9 type posted gains ranging from Rs15 to 50 per bag followed by the reports of slow new crop arrivals from the Sindh markets.

IRRI-6 was an exception which came in for active selling on the reports of slack export demand and was marked down by Rs75 to 100 per bag of 100kg.

Guar also followed the lead of pulses and rose by Rs10 on revival of mill-demand and slow new crop arrivals. The harvesting of the new crop has started on a modest scale.

Barring bajra, which managed to consolidate the previous gains all other cereals, including the maize and jowar were held unchanged for the want of buying support.

Oilseed sector depicted firm trend as all the major seeds, including the rapeseed and cottonseed came in for active support and were quoted sharply higher by Rs75 and 21 respectively. The pressure on ready supplies and firm cakes markets also contributed to the upturn.

The castorseed and til came in for stray selling followed by the reports of fall in export demand. While castorseed and groundnut was held unchanged, til suffered fresh decline of Rs15 per 40kg.

Oilcakes came in renewed support and were marked up by Rs15 to 20 for both cottonseed and rapeseed cakes amid active trading.—M.A