April 7, 2003	Monday	Safar 4, 1424

The Karachi wholesale commodity markets showed mixed trend during the preceding week as prices of most of the essential items generally fell where changed in the absence of strong demand from any quarter.

Dealers said fears of disruption in supplies from the overseas markets of some essential items because of the Iraq war appear to be unfounded as their prices fell instead of rising.

However, reports from the export front were encouraging as the Trading Corporation of Pakistan managed to sell another consignment of 12,000 tons of sugar to a Gulf importer at a higher price of $247 million as compared to previous highest bid of $213 per ton. The persistent fall in sugar prices was halted followed by positive news from the export front. The TCP also intends to sell an identical quantity to Afghanistan also.

The decline was led by some varieties of pulses, largely imported from a number of countries, including Ethiopia and Iran, as there was no shipping delays and all the consignments reached the Karachi Port well in time, they said.

Moong and masoor dal rose by Rs50 to Rs100 per bag of 100 kg, while urad, peas, masoor whole, beetle and gram suffered fall ranging from Rs10 to Rs50.

However, the market was the victim of slack demand rather than large selling from any quarter. The absence of upcountry traders from the market was said to be one of the factors contributing to the prevailing sluggishness.

Some brokers said local commercial houses also remained conspicuous by their absence as no one among them was inclined to build up long positions at the falling prices owing to uncertainty on the world markets during the post-Iraq war trading.

Reports of oversupply on some of the essential counters was said to be another bearish factor as persistent selling by some of the leading brokerage houses also worked against the sentiment, they added.

Steady new crop arrivals of wheat from the Sindh markets and predictions of a bumper crop continued to have negative impact on the prices, which remained under pressure throughout the week. The net fall over the week was of the order of Rs50.

Rice sector on the other hand showed mixed trend because of reports of interruption in exports of fine quality basmati to some Gulf destinations because of Gulf war. Brokers said fall in export demand was said to be chief reason behind the decline in prices of fine types of basmati and some varieties of Irri. Barring Irri-6 broken, which rose by Rs20, Irri-9 Sindh and Sela type of basmati suffered decline ranging from Rs25 to Rs75 per bag.

Sugar resisted fresh decline followed by reports of steady export sales and was firmly held at the previous levels and so did gur and desi sugar amid light trading.

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

Guar also came in for modest support from the local processors and was quoted higher by Rs30 per bag, while bajra was traded at the last levels.

Castorseed and til followed them as prices of the former stayed firm followed by ports of active foreign demand while the latter rose by Rs10.

Cereals on the other hand kept firm under the lead of barley and maize, but bulk of the business was done at the previous levels. Jowar rose by Rs50 on active local demand.

Oilseed sector on the other hand again came in for active support under the lead of rapeseed, which consolidated previous gains followed by reports of firm oilcakes market. Other new crop varieties also came on the board.

Oilcakes showed divergent trend and while cottonseed cakes fell by Rs3 to Rs5, rapeseed cakes were held unchanged followed reports of fall in arrivals from the Sindh markets.—M.A