September 23, 2002	Monday	Rajab 15, 1423

PRICES OF essential items on the Karachi wholesale markets remained stable during the preceding week, but unlike previous couple of weeks, speculative flare-up was checked as ready supplies matched the demand.

Unlike earlier, price changes were few and confined mostly to the essential items depending supply and demand factors.

Apart from steady arrivals from the upcountry trading centres, the other stabilizing factor was the absence of strong demand from Punjab traders, which generally push prices higher.

There were, however, stray either-way changes on essential counters but most of them were orderly and did not reflect panic buying from any quarters, including the commercial houses, dealers said.

There was a relative quiet on the export front, notably on rice owing to the shortage of the commodity for export markets. Local stockists have substantial quantities of fine varieties including sela and kernal basmati but owing to higher export rates, major breakthrough on this front could not be made, they added.

Bulk of the exportable surplus of Irri varieties has already been exhausted and the private sector exporters are awaiting the arrival of new crop from Sindh.

According to market sources new crop Irri types will be available sometimes next month, or early November and by that time there could be a lull on its export.

But the reports of wheat export are said to be fairly encouraging, as both the Trading Corporation of Pakistan and the private sector exporters are making serious effort to dispose of the entire exportable surplus of a million tonnes well before the arrival of new crop, they added.

Prices of some of the industrial raw materials remained on higher side as the speculative forces were not inclined to loosen their grip on bullish market.

Guar, one of the major industrial raw materials catering to the needs of export-oriented procession units remained under speculative squeeze for the third week in a row followed by reports of short crop in Sindh and Balochistan.

Prices of guar seed fell modestly from the recent peak but are still on higher side. Some of the leading processors are planning to import the commodity to meet their export commitments, dealers said.

Other major export items, including the rice also showed firm trend as the prices of Irri-9 Sindh type was quoted higher by Rs50 to 75 per bag, while others including basmati varieties remained pegged at last levels, as local demand was adequately met by the ready supplies.

While Irri-6 and Irri broken types rose by Rs10 to 35, basmati kernal fell by Rs100 on selling prompted by reports of the falling export demand.

Sugar again did not show much change as the bulk of business was done at previous levels. Demand from Punjab dealers was also on the lower side as compared to previous week.

Much of the activity remained centred around pulses, which posted sharp gains amid reports of short supply. But unlike earlier, the final closing was mixed on late selling.

Gram dal and gram whole fell by Rs100 per bag, while peas rose by Rs120, with all other varieties finally closing at previous levels amid slow trading.

Cereals remained in strong demand followed by reports of slow arrivals from the upcountry market as prices of maize further rose by Rs20, while jowar was traded at last levels.

A fresh rise of Rs100 was noted in bajra followed by reports of pressure on ready owing to slow arrivals from the Sindh markets.

Oilseed sector again showed quietly easy trend amid slow trading as prices of rapeseed were quoted further lower by Rs15 to 30 on selling followed by reports of weak oil and oilcakes market.

New crop cottonseed came on the board briefly but as supplies are said to be too meagre on spot basis, trading was again suspended.

Castorseed and till showed firm trend but prices were held unchanged as supplies were enough to meet the ready demand. Ready business was light.

Oilcakes came in active selling in sympathy with the seed as prices of both cottonseed and rapeseed cakes were quoted further lower by Rs15 to 18 but the largest decline ranging from Rs125 to 130 per bag was noted in cottonseed on active selling followed by the reports of steady arrivals of new crop cakes.—M.A