December 15, 2003	Monday	Shawwal 20, 1424

Sugar prices on the Karachi wholesale commodity markets fell to a record low during the previous week, following the active selling by both the commercial houses and the millers.

Some dealers said that the prices had fallen to a five-year low level on the reports of steady new crop arrivals from Sindh mills, and on the fears of a production glut for second consecutive year.

After several weeks of sustained run-up, both in post and pre-Ramazan sessions, prices eased from high levels as larger arrivals from the upcountry markets triggered selling from the local stockists, dealers said.

They said the prices of other essential items could ease further during the next couple of weeks as brokerage houses and commercial traders are not inclined to hold long positions in the backdrop of steady arrivals from both Sindh and Punjab trading centres.

Sugar led the decline as the leading mills flooded the market with new crop and no one among them was inclined to hold long positions owing to larger carryover unsold stocks from the last season’s crop, they added.

The net decline over the week was of the order of Rs110 to Rs115 per bag, being largest recorded in a single-session.

According to mill sources, some of the leading mills owners still hold an unsold stock of about 0.4m tons despite the fact that the Trading Corporation of Pakistan has purchased about 0.2m tons of the commodity to bail out the millers from the impasse of unsold stocks.

Prices of sugar are expected to ease further if the forecast about another bumper crop prove correct, dealers said adding that is perhaps why mill owners are not inclined to hold long positions and try to make ready sales.

Wheat prices, which had soared to new peak levels followed by reports of pressure on ready stocks and talk of making emergency imports from India or some other countries to make up the supply gap, showed a modest softening during the last week as supply position improved a bit. It fell by Rs30 per bag.

Market sources said reports that Passco has agreed to supply 60,000 tons of the commodity to the Sindh flour mills caused a modest selling from the local stockists and the consequent fall in prices.

Some other essential items, notably on the pluses counter also came in for active selling and suffered modest to sharp decline amid active trading.

On the other essential counters, price of pulses showed mixed trend. While beetle,gram dal and masoor dal posted fall ranging from

Rs20 to Rs50 per bag on strong post-Eid selling, beetle superior variety managed to finish higher by Rs50, with all other varieties remaining unchanged at the last levels amid slow trading.

Guar remained stable around the previous levels despite reports of fresh new crop arrivals from the Sindh markets and finished unchanged amid slow trading.

Rice sector showed steady trend owing to conflicting reports about the size of crop. Broken IRRI came in for strong support from the export houses and rose by Rs45, while all other varieties were traded at the last levels under the leading IRRI-9 Sindh and basmati including sela varieties.

New crop kernal basmati came in on the trading board and was quoted sharply lower as compared to old type in the absence of strong demand, dealers said.

Cereals showed firm trend as prices of jowar and bajra tended higher by Rs15 to Rs100 on active support extended by the retailers, while maize was firmly held at the previous levels. Barley was also traded at the last levels in the absence of strong support from the private sector exporters

Oilseed sector again ruled firm as prices of rapeseed consolidated the previous week’s gains amid active trading. Castorseed and til followed them and stayed firm followed by active support extended by the export houses.

Oilcake prices rose modestly for cottonseed cakes on active demand, while rapeseed cakes were firmly held at the previous levels.—M.A