December 04, 2006	Monday	Ziqa'ad 12, 1427

THE Karachi wholesale commodity markets passed an active trading week as most of the essential items attracted alternate bouts of buying and selling despite reports of steady arrivals from the upcountry markets and selling by the leading importers.

Much of the activity remained confined to the pulses sector where price rose and fell as commercial dealers indulged in speculative buying and selling. As a result, prices of some types fell, while others rose in line with the ready position.

But the notable feature of last week's trading was sugar which remained in the news, partly on reports of suspension of crushing by few mills in Sindh as growers were demanding higher rates, and a decline in prices from the last year's highs.

The market sources said that the leading growers of Sindh sugarcane belt have refused to sell their products at an official rate of Rs60 per 40kg but were insisting for Rs80 to 100.

The dealers said that the millers were not inclined to oblige the growers because their demanded rates would increase the sugar price in local markets. Subsequently, supplies were halted which resulted in the suspension of crushing operations.

They further stated that if this suspension continued even for a week, the prices would ultimately shoot up from its current level of Rs30 per kilo as this level was achieved following the resumption of new crop crushing by the millers.

However, commercial houses claimed that the sugar price decline to Rs29 per kilo on the wholesale market was effectuated after the Trading Corporation of Pakistan (TCP), decided to offload their stock of about 0.8 million tons which they had imported last year to ease the local rates. The price at that time was ruling at Rs40 per kilo. On export front, physical shipments of rice against export deals were maintained on the higher side as a loader was in the port.

Prices of fine varieties, including sela and kernel types remained steady around previous levels, but IRRI types showed minor either-way changes followed by steady arrivals from the Sindh markets.

The industrial raw materials did not show much changes and were mostly traded around their previous levels as ready position was fairly comfortable followed by steady arrivals from the upcountry markets, brokers said.

Much of the activity remained confined to pulses sector amid conflicting reports of the ready position. While moong and masoor types were quoted higher by Rs125 to 250 per bag, masoor dal, gram whole and dal suffered fall ranging from Rs50 to 175 per bag - the largest fall of Rs200 being in gram dal.

Among other essentials, wheat managed to post a modest rise of Rs15 owing to reports of slow arrivals from the upcountry markets and an increasing mill demand.

Rice sector, on the other hand, showed divergent trend due to steady arrivals from the Sindh markets and on reports of a fall in export demand.

IRRI-6 was an exception which rose by Rs5, while basmati and IRRI-9 and broken were marked down by Rs10 to 25 on the selling by local dealers. Among fine types, sela was also quoted lower by Rs50.

Brokers said that the absence of leading exporters from the market was another bearish factor which triggered selling by some commercial houses and stockists.

However, physical shipments of the commodity against forward export deals were maintained on the higher side to meet the deadlines, they added.

Among cereals, barley came in for active support from the processors and was marked up by Rs25, while maize and bajra were traded at last levels amid slow trading.

Among major industrial raw materials, guar seeds were quoted higher by Rs25 per bag followed by reports of lower new crop arrivals from the Sindh markets. Oilseed sector showed firm trend but there was no major change in the prices of main seeds, including rapeseed, cottonseed, til and castorseed. All were held unchanged at last levels.

Oilcakes, on the other hand showed divergent trend, while rapeseed cakes were quoted higher by Rs5 to 10, on firm oil market. Cottonseed cakes suffered fresh fall of Rs20 to 30 per 40kg because of active selling on the forward counter.—M.A.