May 29, 2006	Monday	Jumadi-ul-Awwal 1, 1427

A sharp decline in pulses highlighted trading at the Karachi wholesale market last week. It was followed by the reports that a freight subsidy will be allowed to leading importers of the commodity.

The other factor which contributed to decline was the ban on export of pluses to stabilise the local rates, although exporters opposed the official decision and requested to allow export of the surplus, notably of gram whole.

Prices of most of the essential items remained stable around their previous levels and stray business was reported at last levels barring some either-way movements, dealers said.

Apart from steady arrivals from the upcountry market and pre-budget selling by some importers, the other factor which did not allow any major changes on essential counter was the falling demand by the general consumer, they added.

I don’t call it a pre-budget lull but the absence of commercial houses and brokers as main sellers amid falling consumer demand signals that everyone was looking forward to new budget announcement before taking fresh positions, they said.

The dullness was also attributed to reports of $50-60 per tonne subsidy on the pulses import. The move probably was taken to pull down their prices from the current high levels. However, the 15 per cent export duty on sugar was expected to have a softening impact on supply and demand factor in coming weeks.

However, there was no negative impact on the prices of both, pulses and sugar, during last week as stockholder held on to their positions rather than opt for selling.

The situation on the sugar front was expected to ease in coming weeks partly because of a probe in sugar scam which caused the prices to race to all-time higher levels, and partly on the levy of export duty, market sources said.

Supply position was expected to improve further as two more ships carrying 26,500 tons of sugar arrived at the port last week and were in the process of unloading the commodity.

Physical shipments of rice to various countries were maintained on the higher side as one or two rice loaders remained in the port during the week to load export consignments.

The prices of industrial raw materials did not show a softening trend and stayed high as arrivals from the upcountry markets remained low amid reports of holding back of stocks by some prominent dealers ahead of the budget.

Among the pulses which suffered sharp fall on active selling, gram was leading and suffered a fall ranging from Rs475 to 500 per bag followed by the reports of an export ban.

It was followed by masoor imported type which fell by Rs350, while moong imported suffered a fall of Rs125 to 500 per bag - both for inferior and fine types. Other types were mostly traded at previous levels.

Among other essential items wheat came in for stray selling followed by reports of fresh new crop arrivals from the upcountry markets and was marked down by Rs10 to 15 per bag.

On export front, physical shipment of rice remained on the higher side against forward deals as a loader remained in the port loading the commodity. Another was due to load 12,500 tons rice for African destination.

Two ships loaded with 36,000 tons of sugar arrived at the Karachi port and were in the process of unloading the commodity. Although, supplies to retail outlets were being maintained on higher side, prices were still ruling high.

Barring a fresh decline of Rs25 in bajra on selling followed by reports of steady arrivals from the Sindh markets, all other types, including maize were traded at previous level as supplies matched the local demand.

The prices of major industrial raw material did not show a softening trend and remained pegged at previous week’s level. Processors of guarseeds were waiting for the new crop arrivals to resume their normal trade.

Oilseed sector remained dormant as prices of major seeds, including cottonseed, rapeseed and til were held unchanged as local supplies matched the ready demand from the crushers.

Til prices remained stable around previous levels, while castorseed fell by Rs50 on slackened export demand combined with steady arrivals from the Balochistan markets.

Oilcakes again ruled unchanged for rapeseed cakes, while cottonseed cakes rose by Rs10 amid reports of short supply.—M.A.