January 28, 2002	Monday	Ziqa’ad 13, 1422

Karachi’s wholesale commodity markets showed easy trend during the week, as on ready demand from the upcountry dealers did not pick up, prompting selling from the commercial houses and the brokers.

The other contributory factor was a comfortable ready position thanks to steady arrivals from the upcountry markets and the falling demand which accentuated the price situation.

As a result, all the major essential items including sugar, wheat and some varieties of rice were traded lower on persistent selling showing considerable decline in ready demand.

Reports from the export sector, notably rice was encouraging as about 4,000 tons of the commodity is being loaded daily against shipments of the previous export deals.

There are reports of fresh export deals for both IRRI and basmati types with some of the leading Gulf and European importers but prices remained volatile perhaps due to the steady arrivals from Sindh markets.

Wheat followed it for the want of any major breakthrough on the export front despite a rebate of $35 to $40 per ton to the exporters to make the export price competitive, dealers said.

However, the falling prices indicates that it may take quite sometime to handle the exportable surplus of a million tons. Both the TCP and the private sector exporters are making efforts to dispose of surplus stock before the arrival of the new crop —sometimes in April, they added.

Despite the delay in crushing season owing to price dispute between the millers and the growers, the sugar industry is the victim of larger unsold stocks including the carried overs.

Prices fell by Rs10 to 30 per bag on selling by both the mills and the commercial houses.

The combined unsold stocks lying in the godowns of the millers are claimed to be around half a million tons, while the daily production of all the six dozen mills is being added to it but there is no matching ready support.

Desi sugar and gur were an exceptions, which held on to its last levels despite steady new crop arrivals, gur rose by Rs50.

Wheat prices failed to consolidate previous gains on the reports of fresh exports to Afghanistan and fell by Rs5 per bag.

Rice sector showed quiet trend amid reports of slow arrivals. While the fine types of basmati were traded at the previous levels, IRRI varieties on the other hand suffered decline ranging from Rs45 to 50.00 for IRRI-6 and Rs25 for its broken type. Basmati also attracted good support from the exporters and was marked up,while kernal and sela varieties were traded at the last levels.

Pulses resisted fresh decline partly because of the slow demand from the upcountry dealers and were mostly traded at the previous levels as supplies matched the ready buying orders.

Beetle, masoor whole and moong, and gram whole and moong were held unchanged at the previous levels, while masoor dal and peas were quoted higher by Rs5 to 275 per bag. Urad suffered a decline of Rs90.

Guar also remained under pressure on selling by the local broker amid news of steady new crop arrivals and fell by Rs40 per bag.

Cereals stayed mixed as jowar fell by Rs25 to 35, while maize and bajra resisted fresh decline and were held unchanged amid active trading.

Oilseed sector depicted easy trend owing to selling prompted by the reports of a comfortable ready position. Major seeds including rapeseed and cottonseed came in for active selling followed by the reports of steady new crop arrivals and were quoted lower by Rs5 for the latter and Rs25 to 60 for the former on selling triggered by the reports of larger new crop arrivals from the central Sindh markets.

But til lacked the normal trading interest from the export houses and were held unchanged amid modest activity. Castorseed followed them and resisted fresh decline followed by the revival of demand at lower rates.

Oilcakes again showed mixed trend amid slow trading. Cottonseed cakes rose by Rs5 in sympathy with the rise in the price of cottonseed, while rapeseed cakes came in for active selling followed by reports of steady new crop arrivals, falling by Rs25 to 60.—M.A