October 02, 2006	Monday	Ramazan 8, 1427

PRICES of most of the essential items on the Karachi commodity wholesale markets remained stable last week as there were no traces of pre-Ramazan speculative buying on any of the counter.

Prices remained almost unchanged amid falling demand both by the upcountry wholesalers and local retailers, dealers said adding that the release of held back stocks by some commercial houses was another aiding factor behind the stable trend.

However, at retail outlets there were reports of hike here and there by some in the absence of official checks at the retail level. Yet, the rates of essential items generally traded higher, they added.

On the wholesale market, some types of pulses remained under pressure and were marked sharply lower under the lead of pulses. The fall was attributed to the release of hoarded stocks by the importers amid fears that the prices may fall further owing to progressive decline in demand at the retailers’ end.

Some corrective steps taken by the government to ease the price situation also checked speculative increase in the prices of some essential items.

The market sources said that some commodities being sold at the government’s outlets at subsidized rates had a positive impact on other items also. Some were available around the official rates.

However, it was pretty difficult to monitor the price situation at retail level but as far as the wholesale market was concerned there were self-imposed checks on the prices, based on the supply and demand factors.

While prices of some types of pulses fell from their pre-Ramazan levels, wheat was the only exception which showed a modest rise due to the interruption in arrivals from the upcountry markets.

Major export items too, did not show much change in their prices as demand from the private sector exporters remained on the lower side amid reports that leading among them were in the process of signing fresh export deals, foremost among being rice exporters.

Prices of major industrial raw materials were quoted almost unchanged at previous levels amid reports of steady arrivals and a considerable decline in the ready demand.

A stray heating up of the market was witnessed after mid-week as some commercial houses resumed their buying operations on some essential counters fearing pressure on the supplies.

Gram whole and gram dal on the pulses counter were leading as both rose sharply up after the initial dullness which lacked normal buying support from all quarters.

Both gram dal and gram whole rose by Rs200 to 300 per bag, the largest rise being in gram which was widely used in Iftar in various forms. Pressure on supplies owing to slow arrivals from the upcountry markets pushed the prices sharply higher.

But on the other hand masoor whole and moong came in for active selling both from the importers and brokers and were marked down by Rs50 and 175, respectively.

Barring wheat which was marked higher by Rs15 per bag, all other essential items were generally traded at last levels under the lead of rice and some others.

There was a relative quiet on the rice export front as private sector exporters were awaiting the arrival of new crop at a larger scale. However, some had already signed forward export deals with foreign importers and shipments against which were expected to be made by next month.

Modest consignments of new crop rice from Sindh rice belt were arriving on the local wholesale market but were said to be far below a shipload.

The harvesting of new rice crop has just started in the entire belt and dealers expected larger arrivals from upcountry trading centres by the middle of next week.

Major industrial raw materials and cereals lacked normal trading interest and were generally quoted at last levels under the lead of barley. Bajra, however, fell by Rs10 while maize rose by Rs5.

Oilseed sector showed firm trend as prices of major seeds including cottonseed, rapeseed, til and castorseed were firmly held at last levels amid active ready offtake.

Oilcakes suffered fresh fall of Rs50 per bag for cottonseed cakes on selling prompted by larger new crop arrivals while rapeseed cakes were again held unchanged at the last levels.—M.A.