October 16, 2006	Monday	Ramazan 22, 1427

PRICES of some essential commodities eased modestly last week on the Karachi wholesale market with a slight improvement in supply position - thanks to steady arrivals from upcountry markets.

The other supporting factor which kept a check on further escalation was a steep decline in the value of some types of pulses. A section of importers cleared their backlog on the perception of a falling demand once the month of Ramazan ended, dealers said.

Yet, the fall in pulse rates failed in triggering sympathetic selling on other essential counters where supplies remained tight due to the holding back of inventories by the stockists and a modest increase in retail demand, brokers said.

However prices, unlike the previous weeks, generally stayed stable with a modest increase on some counters. There was no reflection of any pressure on supplies or an increase in demand, they said.

They further added that as the holy month was inching towards its end with only a week left for Eid holidays, there was an expectation of shrinkage in local demand which would prompt fresh fall on some counters.

Though sugar remained stable at the Utility Stores but at other retail outlets prices showed variations from area to area as supply lines remained smooth in the absence of hoarding. The increase however was modest.

Prices would have fallen during pre-Eid sessions on selling by importers had the sugar millers resumed new crushing season as was directed by the government.

Nonetheless mill owners, according to latest reports have agreed to resume crushing from November 15, which would have a positive impact on the prices with the arrival of new crop supplies.

However, floor brokers said that the levy of duty on sugar to curb its imports could further enhance the cost as importers who already had brought in the consignments would hoard the stuff to create an artificial shortage in the market.

On export front, rice did not show much change as new crop arrivals of IRRI from the Sindh markets and mills remained high. Moreover, exporters were not very active and may resume operations after Eid holidays, they added.

In physical trading, much of the interest remained confined to the pulses sector. While Masoor and moong types came in for active selling and fell by Rs100 to 175, per bag the largest increase was reported in urad which shot up by Rs375 per 100kg bag.

Other varieties were traded around previous levels barring gram whole which shot up by Rs25 on late buying but gram dal was firmly held at its previous levels.

Among other essential items, wheat showed a modest rise of Rs4 per bag but sugar on the other hand was traded around Rs33 per kg at retail outlets.

Despite steady new crop arrivals, prices of IRRI types remained steady showing a modest rise on some counters amid reports that the private sector exporters were covering their forward sales, dealers said.

They said that a rice loader was in the port to load a consignment of 13,000 tons of new crop IRRI which may push the rates on to upper levels once the trading resumed after the holidays, they added.

But some others said that as the new crop was said to be a bumper, prices may remain stable even after arrivals gather fresh momentum.

Reports reaching here from the Sindh rice belt indicate that the prices of IRRI have declined below the official support price as buyers were not inclined to pay according to procurement prices.

Major industrial raw material did not show much change, although some rose modestly under the lead of guarseed which was quoted higher by Rs25.

Cereals lacked normal support and remained pegged at last levels for bajra and barley, while maize was marked down by Rs10 on selling followed by steady new crop arrivals.

Barring til, which suffered a decline of Rs50 per 40kg on reports of slow export demand, castorseed were held unchanged amid modest local buying.

Cottonseed and rapeseed were actively traded at previous levels as supplies matched the mill demand. Prices of both remained pegged at last levels.

But on the other hand, oilcakes came in for active selling by the stockists and fell by Rs25 to 50 per 40kg for both, rapeseed and cottonseed cakes, respectively.

—M.A.