May 1, 2006	Monday	Rabi-us-Sani 2, 1427

A sharp increase in gram whole and gram dal prices on the Karachi wholesale markets featured the trading last week amid reports of pressure on the supplies.

The floor brokers said that although the harvesting of new crop was well in progress, both in the Sindh and Punjab wheat belts, but arrivals from the upcountry trading centres were still far below the demand.

However, some others said that the price flare-up may have been caused by the reports of a short crop just on the heels of last year’s bumper crop and higher exports to India and few other destinations.

However, the crop situation is expected to be cleared by the middle of the next month as by that time harvesting would be completed and the bulk of produce, notably from small growers would find its way into the markets, they said.

Gram crop estimation is at around 90 per cent of total production but owing to its wider uses, prices are generally guided by supply and demand factors but the current price flare-up is billed as abnormal in a typical Pakistani supply and demand condition.

Other varieties, on the other hand, remained stable around previous levels as there were no short supplies - thanks to steady imports from various foreign sources, they added.

On export front, physical shipments of rice were maintained on the higher side as deadlines were met by the private sector exporters. The notable feature was that the big rice loaders having a capacity of 15,000 to 20,000 tons called on the Karachi port and promptly attended to.

Private sector exporters have recently diversified the foreign export outlets, notably to Iran and some African countries and have firm forward orders for the next quarter ending on June 30, 2006.

Although, three ships loaded with about 50,000 tons of sugar arrived at the Karachi port during the last couple of days while some have already left after unloading the consignments, but the price situation at the retailers’ end is said to be higher.

There is a relative quiet on the wheat front. The prices are steady around previous levels as harvesting of the new crop is in full swing. Both official procurement and mill buying is reported to be fairly steady around the prevailing wholesale prices.

The post trading witnessed active bouts of buying and selling amid conflicting reports about the size of arrivals from the upcountry markets and the release of stocks of some essential items by the importers.

Almost all sectors participated in the trading reflecting that the pent-up demand on some essential counters has made its debut, causing the prices to rise sharply from their previous levels.

Pulses led the market rise under the lead of gram whole and gram dal which were quoted higher by Rs200 to 275 per bag on active support triggered by the reports of a short new crop and increasing exports to various countries, dealers said.

The new gram crop has been harvested but reports of holding back of stocks by leading brokers and active demand from the exporters pushed its prices to new peak levels, they added.

The imported types of masoor whole followed them which posted the rise ranging from Rs150 per bag, notably for the imported stuff from various countries, including India.

But on the other hand masoor dal, moong and urad, all imported types suffered fall ranging from Rs100 to 350, the largest being in urad, on selling by leading importers and commercial houses.

Wheat on the other hand showed a modest rise of Rs5 but there was no pressure on supplies owing to steady new crop arrivals from the Sindh markets and falling ready demand.

On the export front, IRRI-6 came in for active support and rose by Rs50 per bag, while IRRI broken fell by Rs10, with other fine varieties including sela and kernel held on to previous levels.

Sugar prices remained stable at above Rs30 per kilo despite reports of arrivals of three ships loaded with the commodity and millers willing to release an agreed 10 per cent of their total production to retail outlets.

Barring a fresh decline of Rs15 in maize on the selling prompted by new crop arrivals, all other cereals including bajra and barley were traded at last levels owing to steady arrivals.

Among industrial raw materials, guarseeds came in for stray mill demand and rose by Rs25 per bag. Trading was slow on this counter in the absence of strong mill demand.

Oilseed sector was firmly held at last level amid slow trading as prices of major seeds, including cottonseed, rapeseed, til and castorseed were held unchanged as ready position was comfortable.

But on the other hand oilcakes posted gains ranging from Rs10 to 30 for both rapeseed and cottonseed cakes as crushers covered their positions amid reports of pressure on the supplies.—M.A.