January 27, 2003	Monday	Ziqa’ad 23,1423

The Karachi wholesale commodity markets showed firm trend during last week as prices of most of the essential items remained stable, partly because of the revival of ready demand and slow arrivals from the upcountry markets.

Sharp increase in wheat prices featured the trading during the week, which rose by Rs40 per bag amid reports of tight ready position owing to slow arrivals.

The rumours that the government had already imposed ban on further export of the commodity did not have any negative impact on the prices, but caused a price flare-up amid reports of tight ready position.

But an export tender by the Trading Corporation of Pakistan inviting bids from foreign buyers for 30,000 tons of the commodity indicates that there is no ban on foreign sales, and the prices rose on rumours.

Dealers said wheat price might rise further if substantial stocks were not released from the official godowns to the millers, who are lifting ready stocks from the local market.

Ready offtake was, however, relatively slow as commercial houses were waiting for improvement in the supply position instead of buying at the higher rates. Another aiding factor was the revival of demand from the Punjab-based dealers who remained in the market throughout the week.

Their major buying interest was to be confined to the pulses sector, notably gram whole and gram dal, which remained in strong demand, and not only resisted fresh decline but also showed modest gains, dealers said.

But some of the industrial raw material showed an easy trend under the lead of guar on the selling prompted by reports of steady new crop arrivals followed by the local selling.

Major export items, notably rice, came in for active support both from the local consumers and the private sector exporters followed by the reports of strong demand.

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

Prices of sugar maintained its recovery trend from the recent lows to finish with a fresh gain of Rs10 because of reported fall in the arrival from the Punjab mills and pressure on ready supplies.

Wheat also remained in strong demand amid slow trading followed by reports of fresh export tenders for a substantial quantity, and were quoted higher by Rs35 to Rs40 per bag.

Pulses on other hand showed mixed trend on the revival of demand from the Punjab dealers and pressure on ready supplies. Gram whole and gram dal were quoted higher by Rs50 to Rs75, while beetle, peas and masoor dal varieties posted losses ranging from Rs10 to Rs50. Others were traded unchanged.

Reports of fresh selling by importers was said to be main factor behind fresh decline in prices followed by slow ready offtake, dealers said.

Guar on the other hand stayed firm at the previous levels followed by the reports of fall in new crop arrivals amid slow trading owing to higher prices.

Rice sector showed mixed trend amid conflicting reports about the supply position. While broken Irri, Irri-6 and basmati rose by Rs5 to Rs40; fine varieties both sela and Irri-9 were marked down by Rs25 each on active selling.

Cereals, including maize, jowar and bajra, lacked normal buying interest but were firmly held at the last levels followed by the reports of slow arrivals from the Sindh markets and active local demand.

Quietly steady trend was seen on the oilseed sector where prices of major seeds, including rapeseed and castorseed were again traded at the previous levels, while til came in for fresh active selling amid reports of fall in demand. It suffered fall ranging from Rs25 to Rs50 per bag.

Oilcakes again showed steady trend, while rapeseed cakes were held unchanged; cottonseed cakes posted fresh gains ranging from Rs3 to Rs5 amid slow ready mill offtake—M.A