December 18, 2006	Monday	Ziqa'ad 26, 1427

PRICES of some essential commodities on the Karachi wholesale markets rose amid reports of pressure on the ready supplies, last week, due to a slowdown in arrivals from the upcountry trading centres.

Floor brokers reported a considerable fall in daily arrivals as cargo haulers remained busy transporting sacrificial animals from the upcountry markets to city centres due to fast approaching Eidul Azha.

Cattle traders were demanding high freight rates as compared to what they normally charge for transportation of commodities, therefore arrivals witnessed a subsequent fall. This also put pressure on the ready supplies, they said. The price situation was expected to ease during the post-Eid trading week when pent up arrivals from various trading centres will get back to normal which in turn would pull the prices on lower side, they hoped. There was a relative quiet on the export front also as a rice loader called in at the Karachi port late last week - perhaps some private sector exporters rescheduled their shipment deadlines, the market sources said.

Moreover, rice prices, notably of IRRI varieties - both broken and whole - were quoted higher on active local demand fuelled by reports of slow arrivals from the upcountry markets, they added.

Among other essential items, gram whole and dal remained in strong demand as both being extensively used in cuisines prepared during the festival. Dealers said that the prices could rise further as supplies were far behind the local demand. Although, all sugar mills in both zones were working at full capacity but the new crop arrivals in local markets were still being awaited. As result, prices were being quoted around their previous levels.

However, as the crop was reported short, dealers ruled out the possibility of any major change in the future price outlook. The Trading Corporation of Pakistan was already releasing substantial stock of its imported stuff through official channels at a fixed rate.

The industrial raw materials also remained under pressure as prices of a few were quoted modestly higher as processors curtailed their weekly intake to forestall further increase in the prices.

Much of the activity remained confined to the pulses sector where prices of some varieties rose sharply higher under the lead of gram whole, gram dal and masoor which were marked up by Rs75 to 150 per bag for gram and Rs100 to 200 for masoor.

Urad on the other hand remained under pressure followed by reports of selling by some which effectuated the fall by about Rs250 per bag, while beetle and some other types rose modestly.

Rice followed these as private sector exporters covered their forward sales which resulted in the prices of IRRI varieties to shoot up by Rs15 to Rs150. IRRI broken also rose by Rs10.

Fine varieties, including sela and kernel lacked export demand and were again held unchanged as local support was too feeble to push their prices higher.

The rice market was expected to heat up further as a loader had arrived to load 23,000 tons of this commodity against a previously signed export deal.

Among other essential item wheat showed a fractional fall of Rs5 as supply position remained comfortable owing to steady arrivals amid falling mill demand.

Cereals lacked normal trading interest followed by the reports of steady early week arrivals from the upcountry markets. These were held unchanged for maize and barley, while bajra was marked down by Rs15.

Oilseed sector showed mixed trend, while major seeds including rapeseed and cottonseed were held unchanged. Til prices rose by Rs100 on the revival of export demand.

On the other hand, castorseed fell by Rs25 on selling prompted partly by steady arrivals from the Balochistan markets and to some extent on the fall in export and the crushers’ demand.

Oilcakes, both cottonseed and rapeseed were firmly held at their previous levels as local supplies were enough to match the daily demand amid steady arrivals from the Sindh markets.—M.A.