September 11, 2006	Monday	Sha'aban 17, 1427

After falling down from their recent peak levels during the last couple of weeks, the prices of some essential items once again rose amid active support on the reports of short supplies.

However, arrivals of some commodities from the upcountry trading centres were fairly steady which modestly eased further most of the prices under the lead of wheat and few others.

However, the imported pulses remained in the short supply and were traded higher. But it was not clear whether or not the leading importers were holding back their stocks to push the prices further high or there were some other problems on the import front.

Some of the importers had claimed that the foreign exporters of pulses have raised their prices followed by reports that Pakistan was in the market to line up a substantial quantity for making up its local shortfall.

Some commercial dealers attributed the price flare-up in the pulses to pre-Ramazan active buying by the general consumer on the fears of additional increase in the prices due to the pressure on supplies.

Barring gram whole and dal, whose supplies were locally-based because of a bumper crop, all other imported stuff was quoted sharply higher after a recent softening, brokers said.

However, it was satisfying to note that other essential items did not follow lead of the pulses sector which kept the prices stable as local demand was adequately met, some dealers said.

Rice sector, where prices showed sharp increase a week earlier, remained stable around the previous level as new crop arrivals from the Sindh markets did not allow any major changes.

However, physical shipments of the commodity were maintained on the higher side as a rice loader remained in the port during the last week and was loading the consignment.

There was no uniform price indicator from the sugar sector as prices varied from area to area barring the utility stores. Reports that the TCP had made arrangements to keep supplies during the holy month of Ramazan normal were expected to stabilise the prices.

Pulses led the market advance on reports of short supply and rose sharply under the lead of urad which was quoted higher by Rs225 per bag followed by moong up Rs125.

Gram dal, beetle, tuver and masoor varieties followed them as dealers from upcountry trading centres made active short-covering fearing further increase. Those were quoted higher by Rs50 to 100 per bag amid active trading.

Among the other essentials, IRRI broken and IRRI-9 remained in active demand from the exporters and local wholesalers covered positions ahead of the advent of the holy month of the Ramazan.

But among fine varieties, sela type came in for active selling and was marked down by Rs50. Slackened export demand was said to be another bearish factor.

Reports that some leading exporters were busy making covering purchases against their forward sales in turn kept the prices of IRRI types high despite reports of steady arrivals from the Sindh markets.

Wheat on the other hand remained under pressure as supply position remained fairly comfortable thanks to steady arrivals from the upcountry market and active mill demand. It suffered a fresh fall of Rs5.

Prices of major industrial items suffered fresh decline for guarseeds on selling prompted by reports of higher new crop and fell by Rs15 to 25 per 100kg.

Cereals on the other hand stayed firm under the lead of maize which rose by Rs25, while bajra and others including barley were traded at previous levels owing to steady arrivals from the upcountry markets.

Oilseed sector passed through a dull trading week as prices of rapeseed, cottonseed and castorseed were held unchanged barring til which rose by Rs125 per 40kg on the revival of export demand.

Oilcakes suffered fresh fall of Rs50 on selling prompted by larger new crop arrivals while rapeseed cakes were held unchanged.—M.A.