June 26, 2006	Monday	Jumadi-ul-Awwal 29, 1427

THE wholesale commodity markets in Karachi passed through a consolidating phase last week as prices on most of the essential counters showed fractional changes in the absence of strong demand both, from the retailers and the wholesalers.

The prices of some essential items, notably of pulses, stayed stable.

This kept the physical business light as both buyers and sellers kept to the sidelines.

They said that the majority of pulses’ importers have bought consignments of this commodity at much higher rates and as the subsidy is meant for fresh imports they are holding back their stocks rather than selling it at lower rates. As a result, the standoff in relation to prices on the pulses sector continued.

The importers are expected to lower the price of pulses only after they are able to obtain the commodity at subsidised rates and until then consumers may not get a major price gain, analysts feared. They further said that some locally-produced varieties were traded at lower rates under the lead of gram whole and gram dal despite substantial exports to a number of countries to clear the backlog of surplus production, market source said.

The price of major export items, notably rice remained stable around its previous level despite reports of steady physical shipments against forward deals and partly to falling unsold reserve with the local stockist and private sector exporters. According to market sources most of the forward deals are being honoured, well in time.

The situation on sugar front has eased slightly after arrangements were made to market the commodity through the Utility Stores at a fixed price of Rs27.50 per kilo. The sailing is reported to be smooth despite of the reports that the owners at these outlets are also procuring other commodities along with sugar, dealers said.

During the last week, three more ships carrying sugar arrived from different destinations while the consignments were transported to the relevant consignees, both the TCP and private sector importers.

Conflicting reports are pouring in from the owners of sugar mill who have offered to sell, in part, their stocks at the rate of Rs.27.50 per kilo. However, subsequent reports said that there were some problems from the official side to push through the sales.

Among other essentials, wheat remained a bit expensive but reasons behind the pressure on supplies were not immediately known. The increase was modest and attributed to a considerable decline in arrivals from Sindh markets and active mill demand.

Some essential items came in for active selling after the mid-week and fell modestly even though these still were ruling high as stockists were not inclined sell at the falling prices but preferred to hold on their stocks, dealers said.

Some imported pulses led the market decline under the lead of masoor whole and dall which suffered a fall ranging from Rs50 to 200. The largest fall was in masoor which was imported from about half a dozen countries, including India.

But on the other hand gram whole managed to finish higher by Rs25 per bag after an initial decline on late support, while all others, including gram dal, urad and tuver types were traded at the last levels amid light offtake.

Among other essentials wheat showed fresh, but a modest rise of Rs5. However, others including rice varieties were generally traded around their previous level barring IRRI which fell by Rs10 to 15 per bag on the reports of slackened demand from the exporters. Other types were held unchanged due to steady shipments against the forward deals and on the reports of falling stocks of old crop.

Cereals on the other hand were traded modestly - thanks to steady arrivals from the upcountry markets. Barring bajra which was quoted lower by Rs25 on the selling caused by steady arrivals. Maize and barley were firmly held at last levels amid slow ready offtake.

Among industrial raw materials, guarseeds came in for modest selling followed by the reports of rain in some areas of Sindh following selling by the dealers at higher levels. Prices were still prevailing beyond the export parity level.

Oilseed sector showed quiet but steady trend as crushers’ demand was adequately met by the steady arrivals from upcountry dealers. Prices of major seeds including the cottonseed and rapeseed were held unchanged at last levels amid light trading.

Oilcakes again showed divergent trend. While cottonseed cakes fell further by Rs10 per bag on selling by the ginners, rapeseed cakes were firmly held at last levels as the commodity remained in short supply.—M.A.