May 6, 2002	Monday	Safar 22, 1423

THE WHOLESALE Karachi commodity markets showed fractional changes during the preceding week as physical trading remained on the lower side, partly because of Wednesday’s holiday on account of May day.

Earlier in the week, trading also remained insipid because of the presidential referendum but as the outcome of it was announced, the market witnessed a good bit of activity on the essential counters.

Haji Muhammad Aslam of the Usman Traders, a leading trading house dealing in a number of commodities said the majority vote for the president in the referendum lured shaky dealers back into the market and they resumed their normal trading activities after a couple of weeks’ absence.

“The pent-up demand remained fairly persistent till the end of the week, pushing prices of some of the essential items modestly higher”, he says.

Haji Usman, another leading wholesale commodity dealer of New Challi hoped the two-way inter-market is expected to be normal by the next week as the president’s victory in the referendum could well mean consistency in financial policies.

Haji Jabbar, who trades in some major export was also of the view that the traders fears about the future political set-up have almost been allayed as the presidential referendum could lead to a smooth change into a civilian after the October elections.

After a minor interruption, arrivals from the upcountry markets turned normal as the local brokerage houses signalled their agents to fill in the supply gaps to forestall any price flare-up.

However, none of the brokerage houses or commodity dealers tried to create artificial shortage of any commodity, notably the essential ones barring few as was reflected in the ruling prices.

Wheat, which has declined sharply during the last couple of weeks because of larger new crop arrivals and slow mill demand, however, recovered from the early lows amid talk of export deals with some of the countries. It showed a fractional decline of Rs5.

But on the other hand sugar came in for active support from the commercial dealers and rose by Rs25 to 30 per bag, despite reports of higher production figures for current crushing season.

Rice sector showed steady trend amid slow trading as bulk of the business was done at the previous levels. Kernal type of basmati was an exception, which came in for modest selling owing to slack demand from the exporters and fell by Rs50 per bag.

Pluses again showed mixed trend, while moong, gram whole and gram dal suffered fall ranging from Rs25 to 100 per bag, the largest decline of Rs100 per bag being in gram dal followed by reports of larger new crop arrivals from the upcountry markets.

Peas and beetle on the other hand attracted good support at lower levels and were marked up by Rs200 to 37.50 per bag, while all other types were traded at the previous levels.

Guar resisted fresh decline on the renewed demand from local dealers followed by the reports of fall in arrivals from the upcountry centres and were quoted unchanged at the previous levels.

Cereals lacked normal trading interest and as a result prices of maize and bajra were held unchanged at the last levels amid slow trading. Jowar was an exception, which came in for selling and fell by Rs5 per bag.

Barley consolidated previous gains on renewed support from the exporters and managed to finish at the previous levels amid active trading.

Oilseed sector depicted firm trend as the prices posted fresh rise ranging from Rs25 to 30 per 40kg despite steady new crop arrivals from the Sindh markets. Cottonseed was again not quoted owing to the shortage of stocks. The firmness was attributed to fresh rise in oil prices and the pressure on ready supplies.

Castorseed evoked modest interest from the exporters and was quoted higher by Rs5 for all varieties barring Sindh, which was not quoted owing to slow arrivals. Til lacked fresh support and were held unchanged at the previous levels.

Oilcakes stayed firm as the prices of cottonseed cakes were marked up by Rs5, while the rapeseed cakes consolidated previous gains amid active trading.—M.A