March 05, 2007	Monday	Safar 15, 1428

PRICES of some essential items last week remained stable around the previous levels on the Karachi wholesale commodity markets. Ready positions were said to be fairly comfortable thanks to steady arrivals from the upcountry market centres.

Pulses were, however, an exception, which came in for renewed selling followed by reports of selling by some importers and a considerable fall in demand from the upcountry dealers.

But ready offtake by the local wholesalers and the upcountry dealers was on the lower side as prices of some essential items were still well above the normal rates that prevailed during the recent price flare-up, market sources said.

Physical activity, therefore, remained confined to selected counters where prices are ruling in line with the consumer perceptions and future supplies, pulses were leading among them, they said.

Prices of major export items, notably rice both fine and IRRI types did not show any change and were quoted on the higher side followed by reports of higher physical shipments of IRRI varieties to various countries including Iran.

Official export figure of 0.7m ton of IRRI type during the last couple of months against the targeted figure of 1.6m ton may push prices further higher in the coming weeks, brokers said adding “exporters have still to go a long way to cover their forward sales to a number of countries”.

But some of the leading brokers said prices could fall from the current higher levels after the current buying euphoria by the exporters is over. The country has harvested a record crop of 5.5m ton and may have comfortable ready position after having met export demand.

Among other export items, prices of castor seed and til were firmly held unchanged at the previous levels despite revival of export demand and active local buying by the crushers.

Pulses followed them but eased sharply lower from the recent highs followed by reports of active selling by the commercial importers and steady new crop arrivals of gram from some of the Sindh markets where early sown crop is being harvested, dealers said.

There was a relative quiet on the other essential counters, notably sugar and wheat and prices did not show major changes as supplies matched the ready demand.

Prices of industrial raw materials showed erratic movements amid conflicting reports about the size of arrivals from the upcountry markets and falling mill demand.

Market decline was led by the pulses sector where prices urad, peas, gram whole and dal were marked down by Rs15 to 125 per bag, major fall of Rs200 to Rs250 per bag being in gram whole and gram dal.

Moong imported was, however, an exception, which rose by Rs125 on larger buying by the upcountry dealers and pressure on ready supplies.

Among other essentials, wheat showed a modest fall of Rs10, while sugar prices remained on the higher side as arrivals from the local sugar mills were on the lower side of the average demand.

Rice sector ruled firm as private exporters remained active buyers around the prevailing prices.IRRI-6, IRRI broken and Basmati prices were quoted higher by Rs45 to Rs50 per bag, while fine varieties were mostly traded at the last level under the lead of kernel and sela types.

IRRI-6, broken and basmati broken showed divergent trend amid alternate bouts of buying and selling. While the former rose by Rs10 to Rs40,the latter fell by Rs200 owing to falling export demand.

Cereals came in for modest support and rose by Rs75 for bajra, while jowar and maize were traded at the previous levels as supplies were enough to match the local demand. Barley followed them but remained static around the last levels.

Among the major industrial raw materials, guar seed came in for renewed selling amid falling demand and was marked down by Rs50 for the Punjab type owing to lower quality. While others were unchanged.

Oilseed sector lacked normal trading interest as supply position remained fairly steady. Prices of major seeds, notably cottonseed and rapeseed were held unchanged. Til followed them.

Castor seeds on the other hand remained under pressure followed by reports of steady arrivals from Balochistan markets and falling demand from the exporters and local crushers.

Oilcakes on the other hand came in for active selling for rapeseed cakes, and fell by Rs25 to Rs30 per 40 kg, while cottonseed cakes were firmly held at the previous levels.—M.A.