February 10, 2003	Monday	Zul Hijjah 8,1423

Mixed trading was witnessed on the Karachi wholesale commodity markets on comfortable ready position reports, but the falling demand from the upcountry trading centres triggered fresh selling by the local commercial houses.

However, prices remained depressed despite the fact that the arrivals from the upcountry markets dried up because of the transport problem. The cargo haulers remained busy in transporting sacrificial animals from the upcountry to the city.

But as the demand from the Punjab traders was on the lower side because of transport problems, prices eased on some of the essential counters under the lead of pulses and sugar.

There were no signs of recovery witnessed on the pulses sector last week as oversupply of the commodity continued to inspire fresh selling, both from the brokers and the importers, dealers said. Some of the major commodities, notably rice and wheat, however, did not toe the general line of action of the essential items and maintained their steady posture, they added.

Til and guar also followed them as reports of a short crop and active demand from the exporters pushed their prices to a new seasonal peak level amid slow ready offtake.

Unlike the previous two weeks, sugar failed to keep its upward trend as ready position improved after local mills released new crop stocks and the consequent selling by the commercial houses and the mill agents.

Some brokers predict sugar prices could rise from the current levels followed by reports that the Trading Corporation of Pakistan has floated a tender to buy surplus sugar from the local mills for exports. They said the rate at which the TCP would buy the commodity was expected to set prices on the wholesale market in the coming weeks. And if the TCP managed to sell the subsidized sugar on the world markets, local prices will show correspondence increase in the weeks to come, they fear.

Prices of sugar could not maintain their recovery trend from the recent lows and finished with fall ranging from Rs20 to Rs25 because of fall in arrival from the Punjab mills and lower local demand.

Wheat also remained in strong demand amid slow trading followed by reports of fresh export tenders for a substantial quantity, but prices remained stable at the last levels.

Pulses on other hand showed mixed trend on revival of demand from the Punjab dealers and pressure on ready supplies. Masoor whole and masoor dal were quoted further higher by Rs100 to Rs200, gram whole, gram dal beetle and moong suffered decline ranging from Rs25 to Rs100. Guar on the other hand stayed firm amid slow trading despite reports of fall in the new crop arrivals and was marked up by Rs10. Rice sector showed mixed trend amid conflicting reports about the supply position. While Irri-6 fell by Rs25, all other varieties, including sela and kernal basmati were traded at the previous levels amid reports of slow exports.

Cereals, including barley and bajra, depicted firm trend amid active bouts of buying and selling. Jowar came in for the modest support and rose by Rs10 to Rs20, but maize was traded at the previous level amid slow trading.

Oilseed sector on the other hand showed easy trend where prices of major seeds, including rapeseed, suffered sharp fall ranging from Rs25 to Rs40 per 40 kg on selling prompted by reports of weak oil and cakes markets.

Til was an exception, which came in for active short-covering at the lower levels amid reports of increase in demand from the exporters. It finished with gains ranging from Rs25 to Rs50 per 40 kg. Castorseed on the other hand depicted mixed trend, while Lasbela variety rose by Rs10 to Rs20, Sindh type suffered fall ranging from Rs15 to Rs25 on local selling.

Oilcakes ruled mixed followed by reports of slow arrivals. While rapeseed cakes were traded at the previous levels, cottonseed cakes posted fresh gains ranging from Rs3 to Rs7 despite slow ready mill offtake by the crushers.—M.A