July 29, 2002	Monday	Jamadi-ul-Awwal 18,1423

THE WHOLESALE Karachi commodity markets showed quietly easy trend last week as the commercial houses rolled their position from industrial raw material to essential sector, because of the hectic activity and the persistent decline in prices.

Much of the activity remained confined to the pulses sector where prices fell in unison on renewed selling by import houses and some commercial traders for no apparent bearish reason, dealers said.

Leading brokerage houses are said to be building up long positions on some of the essential counters amid fears of short supply in the backdrop of reports of a considerable decline in arrivals from the upcountry markets in recent past.

However, price of pulses remained under pressure despite a decline in imports as leading importers awaited the announcement of the new trade policy.

Luckily, there were no changes in the import policy of pulses, which remained exempt from any levy. The activity on this counter is expected to pick up during next week as by that time import houses would adjust their positions after having taken into account their carryover stocks from the previous year.

Floor brokers said for the last couple of weeks basmati, both sela and kernal varieties were most sought after, followed by a major breakthrough on the export front and in the process prices maintained their recently attained higher levels.

Rice exporters claim, “a major breakthrough has been achieved as the leading exporters have recaptured the bulk of Gulf export market lost to India some few years back owing to the quality differentials”.

Pakistan is now one of the leading rice exporters to both Europe and Gulf markets as was reflected by higher local prices. Irri varieties rose in sympathy.

But there was a relative quiet on the other essential counters, notably sugar and wheat where supplies matched local demand amid modest two-way activity.

A modest decline in wheat reflected the reports of oversupply and falling mill demand. Reports that a wheat loader was in the port and was in the process of loading 15,000 tons of the commodity for a foreign destination failed to generate strong local support.

Rice and sugar on the other hand maintained a firm posture followed by active local demand and a reported slight pressure. The largest rise of Rs50 per bag was noted in the kernal type followed by Irri-9 Sindh, which rose by Rs50, while basmati, and sela varieties were traded at the last levels. Irri broken was an exception, which fell by Rs5.

Among other essentials, wheat prices fell by Rs5 in the absence of strong demand and larger unsold stocks lying with the brokerage houses.

The market decline was led by the pulses sector, which came in for active selling and finished lower by Rs25 to 50 for urad, peas, largest fall of Rs135 per bag being in moong imported type. Others were traded at the last levels.

Sugar on the other hand held on to previous levels followed by the reports that sugar mill owners have requested for a subsidy of Rs6,000 to7,000 per ton to make it competitive on the world markets. Among cereals, both maize and jowar fell by Rs5 to 10 on stray selling at the previous week’s higher levels. Barley was traded unchanged and so did bajra.

Oilseed sector lacked normal trading interest as prices of rapeseed were unchanged, while new crop cottonseed did not come on the trading board. Both castorseed and til came in for active selling and suffered fall ranging from Rs5 to 50, the largest being in til.

Oilcakes showed a modest fall of Rs2 to 5 for both rapeseed and cottonseed cakes amid slow dealings. Prices were not quoted despite reports that some of the ginners in the lower cotton belt have resumed their new crop operations. Rapeseed were held unchanged at the previous levels.

Rapeseed depicted firm trend because of active demand and steady conditions prevailing in the oil and cakes sectors and was quoted unchanged, while til rose further by Rs50 per 40kg and so did the castorseed, up Rs5.

Oilcakes ruled mixed as the prices of new crop cottonseed cakes were quoted higher by Rs10 to 20 per 40kg, rapeseed cakes were traded at the last levels amid slack mill demand and weak oil market.—M.A