18 October 2004	Monday	03 Ramazan 1425

Steady conditions prevailed on the Karachi wholesale markets as the pre-Ramazan week witnessed sharp increase in some of the essential items under the lead of wheat and sugar.

But on the other hand cereal sector came in for strong buying where some of the commodities posted sharp increase followed by reports of hoarding back of stocks by some of the commercial dealers.

Arrivals from the upcountry markets, notably from the Sindh trading centres were fairly steady, which in turn did not allow any major change on any of the essential counters, notably pulses.

Prices of some of the essential items did show fractional increase but they were caused by some technical adjustments not because of pressure on supply of pre-Ramazan short-covering by the general consumers, dealers said.

The market conditions on the retail markets were, however, a bit uncertain as in the absence of official checks, some of the shopkeeper did not adhere to the retail prices based on the wholesale rates, they said.

Among the essential items, sugar and wheat were exceptions, which showed sharp rise, although there was no pressure on the ready supplies thanks to comfortable stock position. Wheat rose by Rs.30.00 per bag.

The rise in sugar prices was attributed to delay in the resumption of new crushing season from Oct 15, as directed by the government and partly to reports of holding back of stocks by some of the millers, brokers said.

But fresh release from the TCP form its stocks checked any speculative trading in the commodity ahead of the advent of the holy month of Ramazan. The government has directed the TCP to supply a part of its stocks on the local market during the holy month to keep prices stable, they said. It was quoted higher by Rs10.

There was no immediate bullish reason to which a modest increase in wheat prices could be attributed excepting some local buying amid fears of further increase during the next couple of weeks.

The government intends to import a million tonnes of the commodity to ensure smooth supplies to the general consumer at competitive rates. Already, two ships loaded with about 95,000 tons of the commodity from Russia had already arrived and some more are due.

Pulses on the other hand did not show much change as supplies matched the ready demand. Prices were held unchanged barring peas, which fell by Rs20 to 25.

On the export front, the physical shipments of new crop rice were maintained on the higher side as a rice loader remained in the port loading the commodity for the Gulf destination, exporters said. Barring a sharp rise of Rs50 to 100 in broken IRRI type, prices of all other varieties were held unchanged.

Prices of industrial raw materials showed sharp either-way changes under the lead of bajra, which suffered sharp fall ranging from Rs250 to 300 per bag of 100kg on selling prompted by larger new crop arrivals. Jowar followed it, off Rs25.

But maize and barley on the other hand remained in active demand and rose by Rs.50.00 amid active trading. Guar fell by Rs40 amid slow trading.

Oilseed sector suffered modest pruning on selling triggered by reports of Steady arrivals from the upcountry markets. Prices of both rapeseed and cottonseed suffered modest decline ranging from Rs5 to 10 and so did til which fell sharply lower by Rs125 to 150 on selling caused by steady new crop arrivals.

Oilcakes on the other hand showed steady trend as prices of both rapeseed and cottonseed cakes were quoted higher by Rs5 to 25 followed by active support extended by the extraction plants.