September 04, 2006	Monday	Sha'aban 10, 1427

Trading activity picked up on the Karachi wholesale markets last week as leading stockists and importers sold in part their long positions on some essential counters followed by reports of considerable improvement in ready position.

Prices kept falling despite the revival of demand by the retailers at higher levels on some essential counters. However, active selling by stockists kept the prices under pressure.

The decline was led by most types of pulses under the lead of moong, masoor and urad followed by reports of steady imports and active selling by the importers on fears of further fall in the prices.

The selling was partly attributed to steady arrivals of fresh imported consignments as two ships called on the port during the week with over 0.1 million tons of moong and yellow peas, dealers said.

Pulses which have risen to all-time high levels due to the shortage remained under pressure and were further marked down for the second week in a row, they added.

But a modest increase in the price of gram whole and gram dal despite larger imports of the commodity is attributed to strong demand as bulk of the local crop was exported early in the season.

Among other essentials, the prices of IRRI varieties maintained their upward drive and rose further aided by larger exports under the previously forward deals and the dwindling local stocks.

Fine varieties like sela and kernel, and other lower grade Basmati types did not show many changes in the absence of strong export demand and were traded around their previous levels mostly on local demand, dealers said.

Wheat may not be in short supply but its prices are lifting up since the last three weeks though modestly. This reflects steady mill offtake amid fears of pressure on ready supplies as the new crop still is months away.

Import of sugar continues as ships loaded with the commodity are making regular calls. During the last week two ships with 30,000 tons of sugar arrived while one of them still is, in the process of unloading the consignment.

Barring masoor, gram whole and gram dal came in for active short-covering after mid-week and rose by Rs50 to 75 after falling earlier. All others notably mash and urad fell by Rs50 to 125.

The largest fall of Rs375 per bag was noted in moong which came in for active selling followed by reports of steady arrivals from local markets.

Among other essentials, wheat also suffered a modest fall of Rs10 to 15 per after rising modestly during the last couple of weeks.

Rice sector showed divergent trend amid conflicting reports of stocks with the local stockists and exporters.

While IRRI-9 and sela varieties were quoted higher by Rs50 per bag on reports of steady foreign sales, IRRI-6 and kernal type of basmati fell by Rs10 and 20, major fall being in fine variety owing to slackened foreign demand.

The industrial raw materials were a bit expensive owing to slow arrivals from the upcountry markets and generally rose where changes on active support extended by the processors.

Guarseed, however, was an exception which came in for renewed selling on the reports of better new crop prospects owing to rain in major growing areas. It fell by another Rs50.

Cereals showed firm trend under the lead of maize which was quoted higher by Rs50, while bajra and barley were traded at previous levels amid slow trading.

Oilseed sector came in for strong buying followed by reports of short supply as compared to crushers’ demand. Rapeseed led the advance which was quoted higher by Rs10 to 15 partly in sympathy with a sharp increase in cakes and oil prices.

Cottonseed cakes, on the other hand, were firmly traded around their previous levels followed by reports of steady new crop arrivals from the Sindh ginneries.

Castorseed and til came in for active support from private sector exporters followed by reports of higher export enquiries and fresh deals. Both posted gains ranging from Rs25 to 100.

Oilcakes showed divergent trend. While rapeseed cakes rose by Rs20 per bag. Cottonseed cakes came in for active selling and fell by Rs100 to 150 per bag after selling by the leading stockist.—M.A