November 12, 2001	Monday	Shaba’an 25, 1422

KARACHI wholesale commodity markets showed mixed trend last week as prices of some of the essential items remained stable — around the previous levels — amid active ready demand.

Wheat and sugar, however, came in for renewed support and maintained their upward drive for the second week in row amid reports of short ready supply. Pulses, on the other hand remained mixed.

The rice sector showed weak trend on the selling prompted by larger new crop arrivals from Sindh and suffered fall ranging from Rs10 60, IRRI varieties being the major losers. Basmati broken was an exception, which rose by Rs100 on good export demand.

Dealers said the demand from Punjab traders has shown a significant increase in the last couple of weeks for unknown reasons, which in turn continues to push the price higher under the lead of pulses.

But the local market sources said, the price of pulses, notably those being imported from various countries should be lower owing to the weakness of the dollar against the rupee.

Some local factors, including the short crop may be one of the reasons behind the current price flare-up in the imported stuff, they added.

However, there are no signs of pre-Ramazan buying from any quarters, including the commercial and brokerage houses, which rather unloaded their long positions to pave the way for fresh imports before the advent of the holy month, they say.

But the fresh increase in prices of wheat and sugar, for no apparent bullish reason, as far as the supply position is concerned was not immediately known.

Some local traders claim both the commodities are finding their way into the war-hit Afghanistan as the dealers there, are said to be building long positions in case the supply routes are choked.

However, they hope prices could fall from the current higher levels after the new crop starts arriving in the market by the end of the current month, as the new crushing season is expected to start next week.

Both sugar and wheat are now surplus and wheat prices should have declined owing to problems on the export front and the availability of the larger exportable surplus, the brokers say.

Among the essentials, sugar led the advance, up Rs50 per bag of 100kg on active local demand prompted by the reports of fall in arrivals from the upcountry markets. But later selling, followed by the reports of steady arrivals failed to push its price down.

Desi sugar and gur also attracted good support amid reports of new crop arrivals from the upcountry markets, notably Sindh trading centres. But gur rose by Rs100, while desi sugar was traded at the last rates.

Pulses showed quietly mixed trend amid slow ready offtake but the gram whole, peas, gram dal urad and some others came in for stray selling and were quoted lower by Rs5 to 50 per bag amid active ready buying.

Moong whole, masoor imported, tuver and beetle on the other hand resisted fresh decline. Moong was marked up by Rs12 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 Sela type posted fresh gains of Rs50 per 100kg bag followed by the reports of slow new crop arrivals from Sindh markets. All other varieties were traded at the last level.

Guar also followed the lead of other raw materials and fell by Rs15 on renewed selling owing to steady new crop arrivals. Barring bajra, which rose by Rs100 from the previous rate, all other cereals, including maize and jowar were held unchanged for the want of buying support.

the oilseed sector depicted mixed trend as all major seeds, including the rapeseed and cottonseed came in for alternate bouts of buying and selling. While Dadu type of rapeseed fell by Rs5, the cottonseed showed a decline of Rs16, following the selling prompted by the larger new crop arrivals.

Castorseed and til came in for stray support followed by the reports of fall in export demand. Both til and castorseed were traded at the last levels and so was groundnut, despite the active seasonal demand.

Oilcakes came in selling at the higher levels and were marked lower by Rs5 for the rapeseed cakes and Rs10 higher for the cottonseed cakes amid active trading.—M.A