December 2, 2002	Monday	Ramazan 26,1423

Prices of essential items generally fell last week as larger arrivals from the upcountry trading centres unsettled the market. Moreover, ready demand was relatively slow as buyers curtailed their daily intake, on the hopes of fresh decline in prices.

Thus, the commodity markets remained the victim of weak demand, besides the comfortable ready positions — thanks to steady arrivals.

The fresh buying orders from Punjab dealers were also on the lower side as compared to past, and the perceptions of oversupply prompted the selling from leading commercial houses, causing major price dents in some of the essential items.

The market decline was led by sugar, which fell sharply from the last levels, to below Rs2,000 per bag after few years.

Dealers said, although in Sindh the crushing did not resume despite strong official notices, apparently in a bid to dispose off the carryover stock of half a million tonne, but the move failed to work as prices fell, rather than rising.

They said, prices could ease further from the current levels on arrival of new crop from the Sindh mills thus improving further the supply position, which eventually would trigger selling from the commercial traders.

Wheat also remained under pressure and so did the pulses, including gram whole and gram dal, which forms one of the essential items of Iftar, and remained in strong demand throughout Ramazan.

But on the other hand rice varieties, notably fine types of basmati, including sela and kernal remained in active demand for the third week in a row, and rose further as private sector exporters remained active buyers at the prevailing prices.

But Irri variety from Sindh fell on selling prompted by the steady new-crop arrivals from the interior. Exporters continued to cover forward export positions to meet their shipment deadlines, dealers said.

Guar, which has been stable around Rs1,750 per bag during the last couple of weeks, came in for modest selling followed by the reports of steady arrivals of new crop from some of the growing areas, and may fall further after the pace of new crop picks up, they added.

Sugar prices declined from the last levels, despite delay in the crushing season owing to larger unsold stock of over 0.4 million tonnes lying with the mills. The fresh net decline over the week was Rs25 to 60 per bag of 100kg. Gur and desi sugar also remained under pressure owing to steady new crop arrivals and fell by Rs50 to 100. Physical shipments of wheat are still being made under the previous export contracts, and prices held unchanged on stray buying by the local mills.

According to market sources, commercial exporters have signed fresh export deals with some Gulf importers, shipments against which are expected to start by sometimes next month.

Rice stayed easy amid active two-way trading. Prices of Irri-9 and Irri-6 suffered fresh fall ranging from Rs15 to 50 per bag on selling prompted by reports of larger new crop arrivals. Fine types of basmati including, sela and kernal were firmly traded at the last levels amid active trading.

Pulses again came in for active selling. Prices of gram whole, gram dal and beetle suffered fall ranging from Rs75 to Rs125, while others were quoted unchanged due to the lack of support from the Punjab dealers.

Cereals showed steady trend as jowar, bajra and maize prices remained firm at the last level amid active trading followed by the reports of comfortable ready position.

Oilseed sector showed easy trend as rapeseed were quoted lower by Rs25 to 35 per 40kg, despite firm oil cakes markets. The fall was attributed to the release of held back stocks by the dealers. And so did the castorseed.

But til came in for modest selling at higher levels and was marked down by Rs50 as exporters were not inclined to pay more owing to their export parity limits. Oilcakes came in for active support at lower levels as rapeseed and cottonseed cakes were quoted higher by Rs7 to 10 per bag amid active trading, followed by reports of larger buying by the crushers.—M.A