February 24, 2003	Monday	Zul Hijjah 22, 1423

The Karachi wholesale commodity markets opened the post-Eid holiday trading week on a firm note, as the prices of essential items generally rose and changed followed by reports of pressure on ready supplies.

Owing to Eid holidays arrivals from interior were on the lower side of the weekly average on account of transport scarcity. Some leading cargo haulers remained engaged in transporting back the left-over sacrificial animals, creating problems for commodity traders.

As a result, the price trend of some essential items as well as some industrial raw materials showed modest to sharp increases. However, dealers said prices are expected to come to their normal level after supply improves, possibly by next week. Transport problem would be solved as local cargo haulers will be back in their normal trade.

Although, there was no fresh news on the wheat export front, prices crossed the Rs900 per bag level for the first time after about a year, dealers said. As far as the local stock position is concerned it is claimed to be fairly satisfactory owing to a sizable exportable surplus, they added.

The interesting feature of the week were sugar prices, which did not react bullishly despite the tender invited by the Trading Corporation of Pakistan (TCP) from the local mills for 12,000 tonnes.

Selling prices offered by the crushers was around Rs19,998 per tonne, which the TCP officials accepted after matching them to the lower prices offered by some mills.

The TCP has entered into the sugar trade to bail out the local industry of large unsold stocks carried-over stock from the last season combined with current surpluses.

Sugar prices could not maintain their recovery trend from the recent lows but resisted fresh decline and finished at the previous levels because of a 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 the prices remained stable showing a modest decline of Rs10, off from the recent highs.

Pulses on the other hand showed steady trend on the revival of demand from Punjab dealers and pressure on the ready supplies. Masoor whole and masoor dal were quoted further higher by Rs25 to 100.

Gram whole was the only exception, which fell by Rs25 to 225. Urad also remained under pressure and fell by Rs45.

Guar on the other hand stayed firm amid slow trading despite reports of fall in new crop arrivals and was marked further up by Rs15.

Rice sector depicted mixed trend followed by the reports on ready supply position. While Irri-6 fell by Rs10, all other varieties including sela and kernal basmati were traded at the previous levels amid reports of slow exports. Irri broken also fell by Rs5.

Cereals on the other hand showed mixed trend. While bajra came in for active support and rose by Rs50, maize suffered a modest decline of Rs10. Jowar also posted a modest rise of Rs10 amid active trading followed by the reports of slow arrivals from upcountry markets.

Oilseed sector on the other hand stayed quiet in the absence of strong demand from the crushers and as a result prices of major seeds including rapeseed were firmly held at the last levels.

Til was an exception, which came in for active short-covering at the lower levels amid reports of increase in demand from the exporters. Although it finished at the previous levels it accounted for active business as exporters covered their forward positions. Castorseed also followed its lead and as the supply and demand matched, prices remained unchanged from the previous levels.

Oilcakes again showed mixed performance followed by the reports of slow arrivals. While cottonseed cakes were traded at the previous levels, rapeseed cakes posted modest fall of Rs2 because of slow ready mill demand.—M.A