December 11, 2006	Monday	Ziqa'ad 19, 1427

TRADING activity on the Karachi wholesale markets was relatively slow last week as ready position was reasonably comfortable on the reports of steady arrivals from the upcountry trading centres.

However, the market witnessed a price flare-up on the pluses counter after mid-week followed by reports of pressure on the ready supplies and holding back of stocks by some leading importers, brokers said.

Price changes which were confined to some essential counters were two-way but most of them remained on the higher side amid falling ready demand.

Floor brokers said that the heavy rain, earlier in the week, changed the future price outlook despite reported pressure on ready supplies due to an interruption in arrivals from the upcountry centres.

Although, leading brokerage houses held on to their unsold positions on the hopes of a pick up in demand once arrivals from the upcountry markets get normal. The prices, they anticipated would thus ease from the current higher levels.

Reports reaching here from the interior markets indicated that the prices of some industrial raw materials had shown sharp decline because of larger unsold stocks and falling demand, they added.

News from the sugar front was not so encouraging which was followed by reports of suspension of crushing operations by some Sindh zone mills due to price dispute with the growers.

Crushers claim that the growers had suspended the delivery of sugarcane at the officially fixed price of Rs60 per maund and were demanding Rs80 to 100 for the same quantity.

Market sources said that the chances of a fall in prices after the arrival of new crop appeared a bit bleak as price dispute will continue in the coming weeks. The growers had unanimously decided to stick to their demand as they did last season.

On rice export front, physical shipments of the commodity against forward deals were steadily being made to meet the deadlines but there were no major changes in the prices of fine types of Basmati and IRRI despite higher crop deals and larger arrivals.

Pulses led the market advance after mid-week under the lead of moong which was quoted higher by Rs250 per bag followed by gram whole and gram dal which posted gains ranging from Rs100 to 200 followed by reports of tight ready position.

Masoor whole followed them to rise by Rs100 on reports of lower imports both from India and other sources. Other varieties were firmly held around their previous levels.

Despite reports of another bumper rice crop of 5.5 million tons, prices of IRRI varieties were quoted higher by Rs20 to 50 followed by Basmati which rose by Rs200 per bag for sela type.

IRRI broken also showed a modest rise but fine types, including kernel type of Basmati were held at previous levels amid active local demand. An increase in export orders was said to be the major aiding factor behind the price increase.

Among other essentials, wheat remained under pressure throughout last week because of the steady arrivals from the upcountry markets and to slackened mill demand. It fell by Rs20. Industrial raw materials were generally quoted around their previous levels barring guarseed which was quoted higher by Rs25 per bag followed by reports of damage to its quality on account of recent rains.

Cereals sector was firmly held owing to steady arrivals from the Sindh markets and prices of maize, barley and bajra were held unchanged at last levels.

Oilseeds did not show much change in its previous rates as supply position was said to be normal because of the steady arrivals from upcountry markets. Prices of major seeds, including cottonseed, rapeseed and castorseed were held unchanged at previous levels.

Til, however, was an exception which rose by Rs125 per 40kg on the revival of export demand and pressure on ready supplies.

Oilcakes on the other hand showed divergent trend. While rapeseed cakes were marked up by Rs5 to 10 per bag. Cottonseed cakes suffered a decline of Rs10 on late selling by the ginners.—M.A.