December 25, 2006	Monday	Zilhaj 03, 1427

TRADING on the Karachi wholesale commodity markets was relatively slow last week as retailers adhered to the sidelines due to an increase in asking prices by the commercial houses.

There was no immediate impact on the wholesale prices of essential items in the backdrop of reports of some relief to general consumers at the official outlets. Sugar, pulses and flour prices remained steady around previous levels. Some essential items which came in for modest support under the lead of pulses were traded higher as ready position remained under pressure, partly because of slow arrivals from the upcountry markets and a tight ready position.

Muhammad Aslam, popularly known as Attiwala of the Usman Traders said that despite higher crop reports, prices of major industrial raw materials, notably guarseeds remained on higher side followed by the reports of damage to crop in Punjab guar belt owing to late rain.

But a leading commodity dealer said that apart from slow arrivals of various commodities from the upcountry markets, the main reason behind high prices was the holding back of stocks by some leading stockists of upcountry markets.

He said that the arrivals of most of the essential items were quoted on higher side as local brokerage houses suspended their upcountry buying operations because of a sharp rise in freight rates.

Other brokers said that as cargo haulers were busy in transporting sacrificial animals from the Interior markets to Karachi at much higher rates, therefore they were reluctant to carry commodities from the trading centres on pre-Eid rates.

However, falling ready offtake, both by the retailers and wholesalers reflected that none among them was inclined to pay more, they said.

Prices of most essential items, barring few exceptions, remained pegged around their previous levels amid slow activity on many counters.

The activity on export front was normal as two rice loaders called on the Karachi port and left after loading about 45,000 tons of the commodity for various destinations.

But there was no major increase in IRRI varieties whose physical shipments were steadily being made against previous export contracts. Pulses led the market advance after mid-week on active support from the upcountry dealers. The biggest increase of Rs425 per bag was recorded in urad followed by Moong which was marked up by Rs200 to 215, followed by gram dal which rose by Rs50. On the other hand, beetle type was marked down on stray selling by the importers.

Other essential items, notably sugar and wheat were traded around previous levels but there was not any rush of buyers as majority was trying to reinforce their stock, including gram dal, widely used in food preparations.

Rice varieties, including sela and kernel types were traded around their last levels and so did IRRI on active foreign support. But IRRI broken remained under pressure and was quoted lower by Rs100 per bag.

While major industrial materials remained steady around previous levels owing to falling ready demand, cereals rose under the lead of bajra which was quoted higher by Rs100 per bag owing to the pressure on ready supplies.

A notable feature was that jowar came on the board after several months and was quoted sharply higher amid active ready business by the local users.

Oilseed sector lacked normal support from the crushers and as a result major seeds, notably cottonseed, rapeseed, castorseed and til were held unchanged.

Oilcakes on the other hand showed mixed trend while rapeseed cakes fell by Rs5 to 8. Cottonseed cakes were quoted unchanged at last levels for the want of demand.—M.A.