January 9, 2006	Monday	Zilhaj 8, 1426

THE Karachi wholesale commodity markets showed firm trend last week as the prices of essential items generally rose on active pre-Eid holiday buying. The bulk of interest, however, remained confined to some essential items, notably pulses, wheat and some others. A number of broker built-up long positions fearing further increase in prices in post-Eid holiday trading.

The physical business was low as compared to the previous average as leading brokers and commercial houses only filled in the supply gaps here and there and did not go beyond.

The floor brokers said that the arrival of most of the commodities was lower as cargo haulers, busy in transporting sacrificial animals, were demanding higher freights for transporting commodities from the upcountry trading centres.

The normal trading activity was expected to resume after the Eid holidays as dealers were not inclined to make fresh commitments in view of the financial risks involved during the holidays.

The price changes were, therefore, mostly fractional and did not reflect large selling by any dealers or brokers in the absence of strong demand from the retailers, they said.

On export front, physical shipment of rice was higher as the private sector exporters judiciously met the shipment deadlines. Shipments were maintained on the higher side as one to two rice loaders called on the port during the week.

Confusion continued on sugar sector amid conflicting reports coming in from the sugarcane belt on reported zoning enforced by the miller. But reports coming in showed that most of the mills were operating normally after initial setback caused by the dispute on selling prices.

The leading commercial dealers said that the prices of sugar have declined by Rs3 to 4 per kilo after the release of stocks by the official sources and steady new crop arrivals from the mills.

The dealers said that although the crop was reported to be short for a second year in row, the supply gap was expected to be met through further imports from various sources to keep the prices around their current levels.

Although, the activity was relatively slow early in the week but after mid-week brokers flooded the market apparently fearing further pressure on supplies owing to interruption in arrivals from the upcountry centres.

The heavy buying also reflected the pre-Eid holiday covering purchases as the markets will close after next Monday’s trading session. The falling arrival from the Sindh markets was another aiding bullish factor.

Most of the essential items remained in strong demand and generally finished with sharp mid-week gains under the lead of pulses. But the widely used gram whole and gram dal, a speciality for Eid dishes, did not show any changes and were quoted at the previous levels.

The largest rise of Rs250 per bag was noted in the imported types of masoor dal and Rs100 for masoor whole. Moong followed them and was marked up by Rs225.

Other varieties were traded at previous levels but ready offtake in most of them was dull amid light trading. Tuver was traded at the last levels and so did the others.

Rice sector on the other hand ruled steady as prices of both IRRI and fine types of basmati were traded at last levels. Sela basmati was, however, an exception which showed an increase.

Owing to a bumper rice crop, arrivals from the rice belt were fairly steady and did not allow major changes in the previous price line despite higher export and weekly physical shipments.

Wheat showed modest decline despite reports of withdrawal of 15 per cent duty to export the surplus caused by higher imports and local production. It fell fractionally by Rs5.

Sugar on the other hand was again traded at the previous levels despite reports that the TCP had sold 31,000 tons of the commodity at Rs26 per kilo. Brokers said that the prices eased at the retailer’s level.

Cereals on the other hand showed firm trend as prices rose under the lead of bajra which posted a rise of Rs50, while others were held unchanged after an early increase.

Among the industrial items, guar seed fell by Rs2, while on the other hand til rose by Rs150 per 40kg partly on active buying and due to slow arrivals from the Sindh markets.

Major oilseeds remained dormant under the lead of cottonseed and rapeseed and traded around the previous amid modest demand from the crushers. Arrivals from the Sindh markets were light.

Oilcakes came in for active support and posted gains ranging from Rs6 to 10 for both rapeseed and cottonseed cakes, respectively. —M.A.