March 19, 2007	Monday	Safar 29, 1428

PRICES of most of the essential items on the Karachi wholesale commodity markets remained stable but modestly higher as compared to previous week's levels despite the fact that a good part of local consumers’ demand was shifted to official outlets where some of these items were available at subsidised rates.

Late buying in rice and some type of pulses came in for active support after mid-week and tended higher amid active trading.

Arrival of some of the essential items, notably new crop of gram whole and some others, were fairly steady, which mostly contained prices within last week's levels.

Much of the activity, however, remained confined to the rice sector where prices of some type rose as compared to previous levels because of higher physical shipments against forward deals during the week.

But reports coming from retail markets said the price flare-up witnessed on the wholesale counter had now spilled over to retail markets where fine types of basmati are being quoted at Rs46 or above per kilo, dealers said.

Bulk of a bumper crop of 5.6m tones has already been shipped to the export markets by the private sector and prices may not fall from the current level until the arrival of the new crop during the next couple of months.

Unlike the previous week, price movements were mostly fractional and instances of price flare-up were not many as consumers were not willing to pay more in the presence of concession in rates, market sources said.

Ready offtake was relatively slow as most of consumers stayed away anticipating further decline in prices in the absence of normal local demand. But some dealers said buyers from upcountry markets were a bit active as they covered their positions on some of the essential counters, notably pulses at the falling prices. The activity on the sugar front was a bit slow as a good part of the local demand was met from the official sources at a reduced price, although it was a bit difficult to get out of the time consuming Ordeals, they added.

According to market sources arrivals of commodity from local sugar mills was on the higher side perhaps because of fear of fall in prices as most of the mills are still in the crushing process, dealers said.

The notable feature was that prices of some of the industrial raw materials were quoted lower partly because of slow demand and partly to an increase in arrivals from the upcountry markets, they said.

Some types of basmati came in for active consumer buying and rose by Rs150 per bag and IRRI-6, which was marked up by Rs10.

Fine varieties, notably sela and kernel basmati, on the other hand, were traded at the previous levels as supplies were enough to meet the local demand, while there was a relative quiet on the export front On this account.

Pulses followed them under the lead of gram whole and beetle, which were quoted higher by Rs50 to Rs100 per bag, while all other varieties were firmly held at the last levels despite active demand from the Punjab dealers.

While major industrial raw materials stayed unchanged at previous levels under the lead of guar seeds, cereals came in for strong support followed by reports of slow arrivals from the upcountry market. Jowar, maize and bajra were leading among them, which posted gains ranging from Rs5 to Rs50.

Oilseed sector showed firm trend as prices of major seeds were again quoted unchanged under the lead of cottonseed, castor seed, but til came in for active support from the exporters and rose by Rs25 to Rs75 Per 40 kg bag.

The notable feature of the week was that new crop of rapeseed from Sindh market arrived on the local market and prices were quoted lower as compared to old crop.

Oilcakes ruled unchanged both for rapeseed and cottonseed cakes in the absence of demand from the crushers. —M.A