July 24, 2006	Monday	Jumadi-ul-Sani 27, 1427

PHYSICAL trading on the Karachi wholesale commodity markets remained relatively sluggish during the preceding week as both, wholesalers and retailers extended cautious support at higher levels.

Official price fixation of some types of pulses including gram whole, gram dal and masoor did not have a negative impact on the prevailing prices. Rather some rose further up.

Apart from the slow arrival of some essential items, pulses and wheat however, were said to be on the lower side of the weekly average. Ready position remained tight followed by the reports of holding back of stocks by leading importers, dealers said.

The price flare-up was again led by pulses amid conflicting reports of fresh imports, notably from Iran and India. Commercial importers were reluctant to pass on the freight subsidy to general consumers, they added.

However, a fresh increase in wheat prices, though modest was not backed by the arrival figures from the upcountry markets and the falling mill demand. Some brokers attributed it to holding back of the stocks to keep the prices high.

Although, the government has allowed export of surplus wheat stocks from July 1, yet the market sources said that there were no reports of export deals by the private sector exporters so far, to which the increase could be attributed.

The price situation on sugar front remained confused despite the fact that three more ships loaded with about 50,000 tons of the commodity called on the Karachi port during the week and some of them were still in the process of unloading, brokers said.

But as the bulk of the floating stock is in the hands of millers and leading importers prices continued to be on the higher side and differ from area to area, notably in the rural areas, they added.

However, physical shipments of the commodity were maintained on the higher side as a loader remained in the port to load rice against the forward deals signed earlier in the year.

But local market sources said that the commodity was in short supply as the bulk of it has already been sold to foreign buyers. Bulk of the exported stuff comprised IRRI varieties, while stray stocks of fine types of basmati were still lying with local stockists and exporters.

Some industrial raw materials were also traded higher followed by the reports of pressure on supplies, partly because of a short crop and partly to the holding back of stocks by some leading stockists and commercial houses.

The market advance was again led by the pulses sector under the lead of moong which spurted by Rs250 per bag fallowed by gram whole, which rose by Rs25. Masoor imported was, however, an exception which came in for modest selling and fell by Rs250 per bag.

Other types were mostly traded at previous levels in the absence of demand from the retailers. Urad, tuver, beetle and some others were held unchanged at the last levels.

Wheat maintained its upward drive, although it rose modestly by Rs15, reflecting a pressure on the ready supplies and rising mill demand. Arrivals from the Sindh markets were reported slowed.

On the export front, rice varieties showed mixed trend. While IRRI broken was quoted higher by Rs5 to 20 per bag, IRRI-6 came in for active selling and was quoted lower by Rs30.

Fine varieties, including sela and kernel ruled firm around previous levels amid steady shipments to some Gulf destinations. A loader was in the port loading IRRI consignment for some African destination.

Among major industrial raw materials, guar seeds posted fresh increase of Rs100 per bag followed by the reports of holding back of stocks by local dealers and slow arrivals from the interior markets.

Cereal sector lacked normal trading interest as supplies matched the local demand followed by steady arrivals. Bajra, however, was an exception which came in for active selling at higher levels and fell by Rs50 to 75 per bag.

Others, notably maize was traded at previous levels followed by the reports of steady arrivals and a considerable decline in demand. Barley followed it and also remained dormant for the want of export demand.

Rapeseed on the oilseed sector came in for active support from the crushers followed by reports of fall in arrivals from the upcountry markets and were quoted higher by Rs5 to 25 per 40 kg. Firm oil market was another contributory factor.

Other major seeds including cottonseed, til and castorseed were firmly held at previous levels followed by the reports of steady arrivals from the Sindh markets.

Oilcakes posted a fresh gain of Rs30 for cottonseed cakes owing to tight supply position, while rapeseed cakes were again held unchanged.—M.A.