November 20, 2006	Monday	Shawwal 27, 1427

THE price trend at the Karachi wholesale commodity markets last week remained mixed as some essential items showed softening mood and descended from their higher position. However, few major commodities displayed fresh rise due to a strong export demand.

Among essential commodities imported types of masoor fell down sharply under the lead of masoor as a section of leading importers indulged in hasty selling on falling local demand and arrival of fresh consignments, brokers said.

While local varieties came in for active support at lower levels, the imported stuff remained under pressure and thus came tumbling down, they said.

Among major export items, some types of IRRI and basmati came in for active covering purchases by the private sector exporters against their forward sales. Kernel variety did not show any change for the second week in a row, they added.

Market sources said that the increase in prices despite reports of another bumper crop of about 5.6 million tons reflected that the exporters were fully alive to the developing situation on rice front and have planned well ahead to sell their exportable surplus at the rising prices.

According to private sector rice exporters both IRRI broken and basmati were actively demanded by a number of countries, including Iran. Physical shipments were being made according to schedules.

There was a relative quiet on the sugar front as prices remained stable at around Rs34 per kilo in most areas, while at the Utility Stores it was claimed to be at around Rs27 per kilo.

Some mills, both in the Sindh and Punjab sugarcane belts, resumed their new crushing season from November 15, but the new crop would take another couple of weeks to reach the market, dealers said.

However, it was generally speculated that there may not be any change in the prevailing price structure as mills will try to keep these at the current levels after having regulated the supplies, they added.

Prices of major raw materials on the other hand were quoted stable around previous levels amid falling demand from the processors and steady arrivals from the upcountry markets.

Pulses sector again led the market decline under the lead of moong which fell by Rs250 followed by masoor whole and dal which were quoted lower by Rs100.

However, the largest fall of Rs400 per bag was noted in masoor dal as a leading importer liquidated his long position followed by the reports of steady imports by others.

Among others, urad also came in for active selling and fell by Rs175 but all others were quoted unchanged barring gram whole and gram dal which were quoted higher by Rs50 to 125.

Among other essentials, wheat suffered a modest decline of Rs10 on stray selling, while sugar at retail level was quoted around its previous level.

On the export front, prices of both IRRI and basmati were quoted further high on strong export demand. IRRI varieties, both whole and broken rose by Rs10 to 25, while sela basmati was quoted higher by Rs50.

Cereals also remained in active demand followed by reports of slow arrivals from the upcountry markets. Both maize and bajra posted gains ranging from Rs25 to 50 but barley was held unchanged.

On the oilseed sector, rapeseed came in for strong demand from the crushers amid reports of pressure on local supplies and was quoted further high by Rs20 to 100 per 40kg.

Dealers said that the import of about 33,000 tons of the commodity may not normalise the prices which may rule higher until the new crop arrives by early next year.

Cottonseed on the other hand was traded around previous level as supplies from the ginners were fairly steady, yet til rose by Rs20 on the revival of export demand.

Oilcakes ruled firm in sympathy with the oilseeds and were further escalated by Rs20 to 100 for rapeseed cakes owing to the short supply. But cottonseed cakes showed a modest rise.—M.A.