June 12, 2006	Monday	Jumadi-ul-Awwal 15, 1427

THE post-budget trading week on the Karachi wholesale commodity markets did not witness any major changes in the price outlook of essential items as traders held on to their stocks rather than indulging in panic selling.

Reports of subsidy on the import of most types of pulses did not have a negative impact on their prices as stockist and commercial houses awaited more developments on demand and supply fronts before chalking out post-budget selling strategy, brokers said.

They said that the leading stockists appeared a little worried over the selling of various types of pulses at the Utility Stores at the discount of Rs6 to 10 per kilo followed by reports of long line of consumers to buy at subsidised rates.

Commodity dealers were expected to take couple of more weeks to decide how to react to post-budget mechanism as leading among them have imported most types of pluses at much higher rates, they added.

A general perception among leading commodity traders was that it may not be easy to supply pulses or sugar to general consumers at lower rates and the supply line and some other factor could have negative impact on more than one count.

As a result both, the price changes and physical business remained at a low level as brokerage and commercial houses awaited fading of the budget-related consumer buying euphoria at subsidised rates.

Some brokers reported that the stray business on essential counter around previous levels - as those inclined to stand in long queues at the Utility Stores opted for local buying at previous levels.

Arrivals from the upcountry also showed a considerable decline as dealers held on to their stocks until the post-budget price ideas were known. Local brokers said that the leading among interior stock holders did not lower their prices in line with the reduced rates.

Some leading commodity dealers, however, predicted that the current standoff on prices will only end after fresh imports were made at lower rates taking into account the rate of subsidy.

Meanwhile, three ships carrying about 50,000 tons of white sugar arrived at the port during the week and fresh arrivals were expected to enable the Utility Stores to maintain their supply line and will continue to supply the commodity to general consumer at the fixed rate of Rs27.50 per kilo.

Although, a near-status quo was maintained earlier in the week but prices of some types of pulses suffered a fall after mid-week as the government began sales at the Utility Stores at subsidised rates.

Importers and wholesalers will take some time to follow the official selling rates after they avail freight subsidy on fresh import of the commodity, dealers said.

Prices of peas, urad and masoor dal suffered fall ranging from Rs35 to 125, the largest decline of Rs300 per bag being in imported type of masoor dal. But both masoor and gram whole were traded higher by Rs50 to 75 per bag.

Among other essential items, wheat and IRRI broken remained under pressure and were marked down by Rs15 to 25 on selling and slackened demand from the retailers.

Rice varieties were firmly held at previous levels despite higher physical shipments under export deals as supplies matched the local demand. IRRI-6 was an exception which rose by Rs15 on local support but IRRI broken was quoted lower by Rs25.

Cereals remained under pressure on selling prompted by reports of larger arrivals from the Sindh market as both maize and bajra were marked lower by Rs50 per bag on local selling in the backdrop of falling demand.

Major industrial raw materials came in for renewed selling followed by reports of a higher new crop and fell by Rs75 per bag under the lead of guarseeds. Others were quoted unchanged.

Major oilseeds rose by Rs150 per 40kg on revival of export demand after several lean weeks. Til rose by Rs150 on active export demand, while on the other hand castorseed was held unchanged.

Other oilseeds including cottonseed and rapeseed were traded at previous levels as supplies were enough to meet local crushers’ demand - thanks to steady arrivals from the upcountry markets.

Oilcakes ruled mixed. While cottonseed cakes rose by another Rs10, rapeseed cakes were quoted lower by Rs10 to 12 per maund owing to steady arrivals.—M.A.