March 17, 2003	Monday	Muharram 13, 1424

Trading activity on the Karachi wholesale commodity markets remained relatively slow as the brokerage houses and commercial traders were not inclined to make fresh commitments owing to delivery problems because of Ashura holidays.

Stray business was, however, reported on some essential counters as the retailers and the wholesalers made modest covering purchases to fill the supply gaps during post-Ashura holidays.

Some varieties of pulses led the market rise on essential counters, although on others prices remained stable and did not show much change.

Identical dull conditions prevailed on raw material counters too, as the processors did not make fresh buying due to the lack of pressure on supplies, and prices generally stayed around previous levels.

Some varieties of pulses, which are consumed in the Ashura related dishes, however, came in for active support and generally rose under the lead of Tuver, masoor and some other varieties.

There was, however, no change in the wholesale prices of sugar despite reports that the Trading Corporation of Pakistan (TCP) had purchased another 25,000 tonnes of the commodity from the local mills at Rs19,250 per tonne.

The TCP has also invited tenders from foreign buyers for a consignment of 12,000 tonnes and reports originating from official sources indicate that over a dozen foreign buyers participated in the tender and offered highest price of $218 per tonne.

The TCP’s Rate Evaluation Committee will decide whether or not to accept the highest bids. But meanwhile, there were no flutters on the local wholesale market as prices remained stable around previous levels.

But some local brokers fear the prices could rise from current levels as the latest production figures at 2.350 tonnes point to a lower total figure. Some of the mills have already shut down their businesses, while others are in the process because of the paucity of sugarcane.

Major industrial raw materials, notably on the oilseed sector resisted fresh decline and mostly quoted at previous levels amid modest activity, notably in the rapeseed sector.

Castorseed and till followed them as their prices were quoted at previous level, despite reports of active foreign demand from the latter.

Guar on the other hand came in for fresh mill support followed by the reports that the current crop is also short of target and the prices could rise further in next couple of weeks.

Wheat did not show much change despite some negative news from the export front and held on to its previous level amid light buying by the millers.

Pulses, on other hand, showed mixed trend on the revival of demand from the Punjab dealers and the pressure on ready supplies. Tuver, masoor and masoor dal were quoted higher by Rs50, while urad suffered a decline of Rs50, with all other varieties remaining pegged at last levels.

Rice sector showed firm trend followed by reports of short supply and prices of all basmati varieties were traded at previous levels amid dull trading.

Basmati kernal and sela varieties were an exception as both came in for active support from the exporters and rose by Rs50 per bag.

Cereals on the other hand stayed firm under the lead of maize, jowar, and bajra but bulk of the business was done at previous levels. Arrivals from the Sindh markets were steady. Barley was held unchanged.

Oilseed sector on the other hand lacked normal trading interest as prices of rapeseed and other major seeds were traded at the last levels amid slow ready offtake.

Oilcakes pressure declined as the arrival of new crop of rapeseed showed a considerable fall followed by reports of holding back of stocks by some crushers. Prices of cottonseed and rapeseed posted gains ranging from Rs2 to 15 per 40kg.—M.A