November 27, 2006	Monday	Ziqa'ad 5, 1427

PRICE changes on the Karachi wholesale commodity markets remained relatively slow last week as commercial and brokerage houses were conspicuous of the absence of buyers for no apparent reasons.

As soon as the mid-week trading picked up some retailers resumed the buying activity which resulted in hike in the prices of some essential items under the lead of few types of pluses, and wheat.

Brokers said that the ready position was comfortable due to steady arrivals from upcountry markets which in turn did not allow many changes in the prevailing prices of most basic items.

Unlike the previous week, price changes were generally fractional as both, buyers and sellers marked the time but did not indulge in fresh buying amid hopes that the prices will remain stable around the current levels, they added.

Some industrial raw material on the other hand showed stray price increase because of the slow arrivals from upcountry markets and on active support extended by the processors, market sources said.

Guarseed was leading among them even though there were reports of higher crop on account of timely rain in major growing areas, including Tharparkar where it was extensively grown as it needs little water, they added.

Pulses, which showed sharp increase last week remained stable as reports of fresh imports and steady arrivals from upcountry markets did not allow major changes in the price structure.

On export front, rice notably IRRI types came in for fresh buying by the exporters against forward foreign sales but prices generally held unchanged owing to steady arrivals from the Sindh markets and reports of a bumper crop.

Physical shipments of the commodity were steadily being made as a rice loader remained in the port loading the commodity which in turn kept the prices around previous levels - both for IRRI and basmati varieties.

There was no change in the sugar price outlook as most of the mills, both in the Sindh and Punjab sugarcane belt, were still to resume the new crushing season.

However, new crop stocks were expected to reach the market by next month but it was too early to expect a fall in prevailing prices, at least in the future as millers were selling the new crop at Rs34 per kilo.

Wheat led the market advance followed by reports of slow arrivals from the upcountry markets and active mill demand which were quoted higher by Rs20 per bag.

Pulses, on the other hand showed divergent trend amid conflicting reports of the ready position. While gram whole and dal prices suffered a sharp fall of Rs150 per bag on reports of steady arrivals from upcountry markets, masoor dal and urad were quoted higher by Rs50 on active demand from some upcountry dealers.

Rice sector maintained a steady trend on the reports of higher exports and physical shipments against foreign deals. Prices remained stable around their previous levels barring IRRI broken which rose by Rs10, while IRRI-6 was marked down by Rs20 on selling prompted by larger new crop arrivals from the Sindh markets.

Among major industrial raw materials, guarseed came in for active support and were quoted higher by Rs25, but others were generally traded at previous levels.

Among cereals, bajra and maize were quoted higher by Rs25 to 50 per bag on active local demand, while barley remained pegged at the last close.

Oilseed sector showed firm trend as prices of major seeds including cottonseed and rapeseed were firmly held at last levels as supplies showed a considerable improvement.

Castorseed on the other hand came in for modest selling followed by reports of a fall in export demand and was marked down by Rs25 to 50 per 40kg, while til was held at the previous level.

The current speculative increase in oilcakes was halted as speculators loosened their squeeze on stocks. Cottonseed and rapeseed cakes, both rose by Rs10, each.—M.A.