05 January 2004	Monday	12 Ziqa'ad 1424

Prices of essential items on the Karachi wholesale markets generally rose last week, followed by the reports of holding back of stocks by some leading commercial and brokerage houses.

Basmati varieties, both kernal and sela, however were exceptions by suffering a decline on selling prompted by the reports of falling foreign demand. Irri types, on the other hand, came in for active support on higher export orders.

The increase, though modest, was across the board for the first time after Eid. Local brokers attributed the increase to a considerable fall in the arrivals from the upcountry trading centres.

However, they ruled out the possibility of artificial shortage and claimed the current increase in prices was due to the year-end closing rather than on account of any speculative activity.

"It has always been a practice during the past several years that commercial houses curtail their daily operations to take stock of their inventories before resuming new year's trading activity", they said.

Almost all essential items, including sugar and wheat rose in sympathy with others, but an increase in sugar was not backed by the objective supply position in the backdrop of higher crop idea.

Floor brokers said the modest increase in sugar is not related to any positive development, as the supply is expected to remain fairly comfortable in the country owing to another bumper crop prospects.

Sugar prices maintained their upward drive for the second week in a row as leading commercial houses build their positions at the prevailing lower prices. The net rise over the week was of the order of Rs10 to 15 per bag.

Among other essentials, wheat followed sugar and posted a fresh increase of Rs20 per bag after having modestly fallen from the current high levels during the last couple of weeks. Pressure on ready supplies was said to be the main cause behind the renewed price flare-up.

Pluses, which also rose in sympathy with others last week, however, came in for renewed selling under the lead of gram and suffered fall ranging from Rs10 to 15 for beetle and gram, while on the other hand tuver rose by Rs125, with all other types remaining pegged at the last close.

On other essential counters, basmati prices remained under pressure followed by the reports of steady arrivals from the upcountry markets and partly to falling export demand. Prices ended lower by Rs50 to 100 for basmati and sela variety.The largest decline of Rs200 per bag was noted in kernal type of basmati, on the selling triggered by steady new crop arrivals from the Punjab market and the falling demand from the Gulf importers.

Irri varieties, however, maintained their upward drive on good export demand and rose by Rs25 to 45 for Irri broken and Irri-6 amid active trading. Guar stayed firm and rose by Rs25 per bag despite reports of fresh new crop arrivals from the Sindh markets. Holding back of stocks by local commercial houses was claimed to be chief reason behind the fresh price increase. The new crop was said to be on the higher side as compared to last year.

Cereals again showed divergent trend as prices of bajra and maize rose by Rs25 to 40 on active buying made by the brokerage houses, while jowar came in for mdest selling at higher levels and fell to close lower by Rs5 to 10. Barley was traded at the previous level.

Oilseeds showed easy trend as prices of new crop rapeseed fell further by Rs10, while all other types were traded at previous levels, followed by the reports of steady oil market. Cottonseed remained in active demand followed by the reports of lower cotton crop and firm cakes market.

Castorseed on the other hand, came in for active selling and fell by Rs50 on selling prompted by the reports of steady arrivals from Balochistan and slackened export demand.

Til prices, which had risen to new peak levels, came in for active selling followed by the reports of new crop arrivals and fell by Rs100. Fall in export demand was another negative factor.

Oilcake prices showed mixed trend, while rapeseed cakes fell by Rs5, and cottonseed cakes posted a fresh gain of Rs10 on reports of higher cottonseed prices.