January 16, 2006	Monday	Zilhaj 15, 1426

THE pre-Eid holiday mood prevailed on the Karachi wholesale markets during the preceding week as commercial houses and brokers remained conspicuous of the absence of buying interest due to a long weekend. Some essential items, notably gram whole and gram dal, which are widely used in meat dishes, were exceptions which came in for active renewed buying mostly at the last levels. Others were traded around their previous rates.

The markets remained closed from January 11 to 13 with a brief opening on January 14. The dealers expected no major changes in the prices as the majority were busy in exchanging Eid greetings rather than indulging themselves into fresh buying.

The normal trading was expected to be resumed by the next week i.e., from January 16 with indications that the pent-up demand, notably in some essential items may push the prices further high, dealers said.

But as the cargo haulers remained busy in transporting the leftover sacrificial animals from the city to their upcountry destinations, arrivals of commodities from the upcountry markets remained far below their normal levels, they added.

According to the market sources, prices of some essential items could rise from the current levels owing to the pressure on ready supplies in the wake of a considerable decline in arrivals from the upcountry markets.

But some others predicted the local stock position as fairly good and that the supply gaps in some essential counters could be bridged here and there without causing any major price flare-up.

Meanwhile, reports coming from the Sindh sugar mills indicated that the mills have resumed the crushing after an interruption as a protest against the arrest of a mill employee who later was released.

Sugar prices on the wholesale markets were reported to be on the lower side at around Rs23 per kilo at the Utility Stores. Though, at the retail outlets it was still selling at higher rates.

However, as the current crop was short of target by about three million tons, dealers did not anticipate major change in the future price outlook despite the release of the imported stuff from the official sources, market sources said.

Moreover, as the normal stocks of the commodity from the Sindh mills were not reaching the local commodities market, pressure on the ready supplies was expected to continue with the consequent increase in prices, they added.

On other essential counters, prices of wheat remained stable around previous levels despite the reports of 15 per cent duty waiver on exports to clear the surplus stocks of the imported stuff.

The market sources said that the government intended to export about 2.5 million tons of the surplus wheat ahead of the new crop arrival in April. This was an apparent effort of the government to ensure fair prices to the growers.

On the export front, physical shipments of rice were steadily maintained on the higher side as the exporters were not in a mood to miss the deadlines to various countries, including Iran.

Despite the reports of a bumper crop of over five million tons, the prices of all varieties remained stable around previous levels. IRRI broken was an exception which remained under pressure owing to lower export sales.

The major industrial raw materials were actively traded at higher levels under the lead of oilseeds and guar seeds followed by the reports of a fall in arrivals from the upcountry because of higher freight rates demanded by the truck owners.

Cereals, on the other hand, showed quietly firm trend under the lead of bajra, maize and jowar. But barley was traded modestly higher as some of the industrial users covered their positions.

The oilseed sector showed firm trend under the lead of cottonseed which were said to be in short supply, partly because of a short cotton crop and partly to holding back of stocks by the ginners. They intended to sell the same at high rates.

Rapeseed, castorseed were firmly held at the previous levels but til showed a modest rise on reports of steady new crop exports and rising demand from the major importers, notably from Iran and Turkey.

Oilcakes came in for modest support as the crushers covered their positions to meet the immediate and late week demands. After the initial rise, prices settled around their previous levels.—M.A.