August 19, 2002	Monday	Jamadi-us-Saani 9, 1423

The Karachi wholesale commodity markets showed mixed trend as the prices of major industrial raw materials remained under pressure and fell further on selling prompted by reports of steady arrivals from the upcountry trading centres.

But on the other hand, essential sector showed firm trend under the lead of pulses, which came in for active support at the fag-end of the last week, and rose in unison.

Wheat followed them on reports of fresh export contracts with foreign buyers at much higher rates, which in turn had a bullish impact on the local prices.

Barring sugar, which came in for stray selling, other essential items including the fine varieties of rice came in for active support, followed by the reports of steady exports and ended higher. Some varieties, however, stayed weak.

Pulses, which have been under pressure for last couple of weeks on post-budget selling by the commercial importers managed to finish modestly higher under the lead of gram whole imported types.

Dealers said the lower levels attained by pulses over the last couple of weeks on the reports of slow demand from the Punjab traders attracted a lot of buying by the local and the upcountry traders.

The other stimulating factor was said to be the holding back of stocks by some leading importers to forestall fresh decline in the imported stuff, while active short-covering at the lower level was another aiding factor.

Wheat attracted normal trading interest in the backdrop of fresh news from the export front and the reports that some high-powered delegations are being sent to explore new export outlets in Africa and the Middle East.

The local mill demand was also said to be below normal. It rose by Rs15 per bag of 100kg.

According to the TCP sources some of the foreigb buyers have already bid for a substantial quantity of wheat at an improved rate of $108 per ton and it has suggested them to revise upward thier offers so that an export deal could be signed.

Among the industrial raw materials, guar, which has risen to a year’s high level of well over Rs1,125 per bag of 100kg on the reports of short crop in Sindh and Balochistan managed to sustain the previous week’s run-up owing to strong demand from the processors.

Among other raw materials, rapeseed also attracted active selling followed by the reports of strong oil and cakes markets and were firmly held at the previous week’s higher levels.

Sugar prices, which have been declining for the last couple of weeks remained under pressure despite the reports of imposition of five per cent excise duty on the import of raw sugar. It suffered a decline of Rs20, while desi sugar fell by Rs50, with gur remaining unchanged at the last levels.

The rice sector maintained a firm posture followed by the reports of active local demand and a slight pressure on ready suplies.

The largest rise of Rs25 per bag was recorded in basmati type followed by a sharp decline of Rs200 in sela basmati, with all other varieties remaining pegged at the last close.

The market advance was led by the pulses sector, which came in for active support and finished higher by Rs5 to 50 for all types, largest gain of Rs100 per bag being in masoor dal imported. Peas were an exception, off by Rs40 on stray selling.

Among the cereals, jowar, maize and bajra were traded at the last levels on modest buying at the previous week’s higher levels. But barley followed them.

Oilseed sector showed quiet trend as the prices of rapeseed were held unchanged followed by the reports of pressure on supplies and firm oil and cakes markets. Castorseed rose by Rs10 to 15 and til posted fresh gains of Rs25 to 35. Castorseed were traded higher by Rs10 to 15. New crop cottonseed was again not quoted on the ready board.

Oilcakes remained in strong demand amid reports of short supply and prices rose further by 5 for rapeseed and Rs35 cottonseed amid reports of short supply.—M.A