May 22, 2006	Monday	Rabi-us-Sani 23, 1427

TRADING on the Karachi wholesale commodity markets improved modestly as a section of commercial houses resumed fresh buying at falling prices - notably on essential counters.

The decline, particularly in some pulses last week was attributed to steady arrivals from the upcountry and to selling by few importers.

Owing to larger imports of some types of pulses, wholesalers failed to regulate the prices after releasing stocks in measured quantities. Some of them whose holding capacity was not as strong sold it in haste, pushing the prices further down.

Pulses from India and Iran were quoted well below the prices at which the commodity from other countries was being bargained for, due to the difference in freights and other charges. Importers now prefer pulses from India to cater to the needs of local consumers at cheaper rates.

Local gram, both whole and dal also suffered modest fall as new crop arrivals improved amid reports of higher production, despite steady exports to India, Bangladesh and few others, brokers said.

Price confusion on the sugar front persisted as reports coming from various upcountry markets quoted different prices from area to area with either-way gap of Rs10.00 per kilo.

Among other essential items, wheat remained stable around previous level but flour mills were not happy with the official move to restrict imports after levying duty on fresh arrivals.

The step was taken to ensure fair price to growers on the reports of manipulation by middlemen and agents to buy wheat directly from growers at well below the official support price, market sources said.

On export front, physical shipments of rice were maintained on the higher side as private sector exporters tried to meet deadlines against forward sales.

There, however, was no easing of the prices of industrial raw materials which continue to be on the higher side followed by reports of short supply owing to successive crop failures in the absence of normal rainfall.

The mid-week trading activity picked up modestly as some commercial traders covered their positions at lower levels on pulses counter.

Dealers said that the upcountry traders were also buyers at falling prices but their bulk of support remained confined to the imported type of masoor and gram whole. Prices of other type of pulses were generally traded at previous levels as supply position was fairly comfortable.

But there was no panic on the pulses counter as its imports were duty-free and as a result there were no reports of pre-budget panic buying, they said.

Among other essentials, wheat showed a modest decline of Rs10 followed by reports of steady new arrivals from the Sindh markets and relatively slow mill buying.

Flour mills owners, however, were worried over 10 per cent import duty on the perception that the local crop was below the target and they have to import a million tons to fill in supply gaps if any, some others claimed.

There was a relative quiet on the sugar front amid reports that the selling price at retailers’ end were still on higher side despite steady imports by the TCP and release of stocks at the utility stores.

Another ship carrying 18,000 tons of the commodity arrived at the Karachi Port and was awaiting berth - expected to get by next week. But there were doubts of the prices going down.

On rice front, physical shipments of the commodity were maintained on the higher side but there was no change in the prices of IRRI barring a modest rise of Rs10 in broken type.

Fine varieties, including sela and kernel types of basmati were traded at previous levels amid reports of fresh export deals being signed with Gulf and European importers.

Industrial raw materials did not show any changes and were quoted higher as the mill demand remained active owing to reports of a tight supply followed by slow arrivals from the upcountry markets.

Barring maize, which fell by Rs20 to 25 on selling prompted by new crop arrivals, others including bajra remained pegged at last levels and so did the barley.

Oilseeds, including cottonseed and rapeseed lacked normal trading interest as supply position was fairly comfortable — thanks to arrivals from the Sindh markets. Prices remained unchanged barring til and castorseed which rose by Rs25 to 50 per 40kg.

Oilcakes posted fresh gain of Rs5 for cottonseed, while rapeseed cakes were firmly held at last levels amid slow trading.—M.A.