July 10, 2006	Monday	Jumadi-ul-Sani 13, 1427

TRADING on the Karachi wholesale commodity markets last week remained insipid as buyers were not inclined to make fresh commitments on most of the essential counters at higher rates.

The ready offtake was light and mostly confined to some essential items, notably pulses and wheat which remained in short supply in the open market because of slow arrivals from the upcountry markets.

Dealers said that most price increases were confined to the imported stuff as leading importers released the stock well below the daily average demand in an effort to keep the prices high.

Pulses should have fallen down sharply as the government has allowed freight subsidy amounting to about Rs60 per ton but it was not reflected in the prices of pulses which ruled high, notably at the retail outlets, they added.

Wheat, which is ruling unchanged for the last couple of weeks also rose as its export was allowed from July 1, 2006, market sources said.

There were indications that it may raise further high in the coming weeks if the exporters managed to clinch forward sale deals with foreign buyers, they said.

Confusion on the sugar front continued despite a ban on the fresh import of the commodity by both, the TCP and private sector importers as the quantity already imported was claimed to be enough to meet local demand before the arrival of a new crop.

Prices of sugar stayed on the higher side as retailers were not inclined to lower these and the average rates at retail outlets were being quoted around Rs34 per kilo.

However, at the Utility Stores, the commodity was available at around Rs27 per kilo on a fixed individual quota per bag of 2.5 kilo. Regarding the export of major commodities, the rice target of billion plus dollars was said to have been achieved. Bulk of the exportable surplus of both, IRRI and fine varieties was exhausted and the shipment deadline met, some private sector exporters said.

The market advance was led by the pulses sector under the lead of moong which posted the largest increase of Rs250 to 500 per bag followed by reports of the shortage of ready stocks.

It was followed by gram whole and gram dal, which showed a modest rise of Rs25 each despite the arrival reports of a ship carrying 36,000 tons of the commodity.

Market sources said that the prices of gram and its allied products were expected to ease from their current levels owing to a freight subsidy of Rs60 per ton on the imported stuff. The benefit was expected to be passed on to the general consumer at the retail level, they added.

Other types of pulses were mostly traded at previous levels as ready supplies were said to be sufficient to meet the local demand. Beetle showed a modest rise.

Among other essentials, wheat maintained its upward drive and was quoted higher by Rs25 on the reports that its surplus stock will be exported to foreign countries.

Other essential items were mostly traded at previous levels, partly owing to a slow demand and partly to steady arrivals from the upcountry markets.

The stock position of rice remained tight as bulk of the old crop was exported at competitive rates to over a dozen countries. IRRI-6 broken was an exception which rose by Rs10, while sela and kernel types of fine basmati were traded at last levels.

Cereal sector lacked normal trading interest and as a result prices of maize, bajra and barely were held unchanged at previous level amid stray ready offtake.

Rapeseed, on oilseed counter, came in for active support amid reports of slow arrivals from the upcountry market and firm oil and cakes market. Prices of all varieties were marked up by Rs10 to 50.

Other major seeds including cottonseed, castorseed and til were traded at last levels as supplies matched the ready demand. But there was a relative quiet on the export front.

Oilcakes stayed unchanged for rapeseed cakes, while cottonseed cakes posted a fresh rise of Rs10 owing to a pressure on the supplies.—M.A.