January 20, 2003	Monday	Ziqa'ad 16, 1423

The Karachi wholesale commodity markets resisted fresh decline during last week as the leading brokerage and commercial houses resumed their covering operations, which was followed by the predictions of an expected pressure on ready supplies.

The backlog of larger imports of pulses and some other essential commodities was being progressively cleared, which in turn would have a stabilizing impact on the prices.

Pulses had been under pressure for the last couple of weeks on the persistent selling by importers. This in turn had sharply lowered the price of all varieties, rather to new lows for last several years.

But some dealers claim the sympathetic fall in prices was not visible at the retail level, as a general consumer could not benefit from the steep decline in prices on wholesale markets.

However, unlike previous weeks, some types of pulses not only resisted fresh decline but also finished with modest rise, reflecting the strong presence of the Punjab traders, they said.

Some other essential counters, notably rice also gave an identical performance followed by conflicting reports from the export front. It was satisfying to note, however, the prices of kernal type of basmati were traded higher, followed by the reports of active export business in the Gulf and some European countries.

The current price tussle between the Sindh sugar mills and the growers, and a delayed resumption of crushing season by some mills had a stabilizing impact on the falling prices.

As the fears of pressure on supplies owing to slow arrivals of new crop gripped the dealers, prices not only resisted fresh decline but were also quoted modestly higher after about six weeks of persistent decline.

But the physical business shrank sharply on those counters where traders had raised prices as the buyers stayed away anticipating decline in the prices during the next couple of weeks.

Wheat followed it on the rising export prospects and at the higher rates, Iraq being the major buyer. Owing to fears of the US attack, Iraq is building up its stock position of essential commodities, including wheat to cover any shortfall of essentials during the war.

Sugar resisted fresh fall and recovered from the recent lows to finish with a gain of Rs40, owing to delay in the crushing season. Fall in the arrival from Punjab mills and local buying pushed the prices modestly higher from the seasonal lows.

Wheat on the other hand showed firm trend amid slow trading followed by the reports that export may be banned as the entire exportable surplus has been disposed of.

Pulses recovered from previous lows on the revival of demand from the Punjab dealers and pressure on ready supplies. Gram whole, beetle, urad and masoor dal varieties posted gains ranging from Rs35 to 125, while others were traded unchanged barring tuver gram whole and gram dal, which fell by Rs65 to 150 per 100kg.

Reports of fresh selling by importers was said to be the main cause behind the fresh decline in prices of gram and gram dal, dealers said.

Guar also came in for modest selling followed by the reports of steady new crop arrivals and suffered fall of Rs75 per bag. Slack mill demand also worked against the underlying sentiment.

Rice sector showed firm trend amid conflicting reports about exports. While broken Irri, and other Irri types rose by Rs5 to 35 per bag, fine varieties both kernal and sela were firmly held at the last levels amid active trading.

Among the cereals, maize fell by Rs10 but jowar and bajra were firmly held at the last levels, followed by reports of slow arrivals from the Sindh markets and active local demand.

Firm conditions was seen on the oilseed sector where prices of major seeds, including the rapeseed and castorseed were traded at the previous levels, while til came in for fresh active selling followed by the reports of fall in exporters’ demand. The net fall was of the order of Rs20 per 70.

Oilcakes showed divergent trend, while the rapeseed cakes fell by Rs5 to 8, cottonseed cakes rose by Rs5 to 10.—M.A