April 24, 2006	Monday	Rabi-ul-Awwal 25, 1427

Prices of some essential items eased further on the Karachi wholesale markets as supplies improved on steady arrivals from the upcountry market.

Leading importers of pulses were offloading their long positions amid fears of more declines in the prices following the arrival of fresh import consignments, market sources said.

The bulk of selling remained confined to some variety of pulses which had risen to an all-time high level a couple of weeks earlier, although most of them were still ruling well above the previous year’s level, they added.

Reports from the sugar sector were not that encouraging as there was no control on the prices at retailer’s end and the commodity was not available at the officially-fixed rates.

Market sources said that according to reports mill owners were not releasing 10 per cent of their production in the open market to ease the sky-rocketing prices, while confusion on supply front was still continuing.

They hoped that the prices may come down from the current highly erratic levels during the next couple of weeks as two sugar loaders arrived during the week and more are due in the next week.

But the situation on rice front was fairly encouraging as physical shipment deadlines were being judiciously met by the private sector exporters.

Two rice loaders, one having the capacity of 20,000 tons, were in the port to load the commodity, dealers said.

Prices of fine varieties remained stable thanks to strong demand but IRRI varieties remained under pressure owing to the oversupply on account of a bumper crop in Sindh, and larger unsold stocks lying with the growers.

Meanwhile, the harvesting of wheat was in full swing in the entire belt and official procurement operations were also in place in all centres. As a result, wheat prices showed fresh but a modest fall for the second week in a row.

Some dealers said that the prices may rise from the current level once exports were resumed. The local crop is feared to fall modestly as compared to the previous year due to untimely rain.

Physical activity picked up after mid-week as brokers and commercial houses resumed their normal trading amid reports of improved ready position. As a result, some essential items managed to post modest gains.

Pluses showed mixed trend, while urad, gram whole and gram dal rose by Rs25 to 50 per bag. Moong suffered a decline of Rs50 with mosoor whole and dal, and some other types being traded at previous levels.

Wheat showed a fractional decline of Rs5 on stray selling triggered by the reports of steady new crop arrivals from the private sources and partly to slow mill demand.

Despite higher physical shipments of rice against the forward deals, prices of IRRI varieties remained under pressure on steady arrivals from the upcountry market as stockist tried to dispose of their unsold stocks well before the new crop sowing could resume, dealers said. IRRI-9 suffered a decline of Rs50.

The situation on the sugar front was not clear as selling prices were quoted higher despite the fact that three ships carrying about 50,000 tons of the commodity arrived at the port during the week while some had already completed their unloading operations, they said.

Among the cereals, both maize and bajra came in for active selling followed by the reports of higher arrivals from the Sindh market and were quoted lower by Rs10 to 50.

Guarseed came in for renewed selling amid reports of fresh arrivals from the Punjab markets and were marked down by Rs25, while barley was quoted higher by Rs50 as local users covered their forward positions.

Oilseed sector showed firm trend as prices of some types of rapeseed posted sharp rise ranging from Rs15 to 70, the highest being in Nawabshah variety on the reports of higher oil and cake prices.

Other major seeds, including cottonseed, til and castorseed were traded at previous levels amid modest ready offtake by the crushers. Export demand for both til and castorseed remained low.

Oilcakes showed a firm trend as prices of both rapeseed and cottonseed cakes were marked up by Rs10 to 20 amid active mill demand followed by the reports of short supply.—M.A