March 26, 2007	Monday	Rabi-ul-Awwal 6, 1428

PRICES of some of the essential items on the Karachi wholesale commodity markets tended higher where change on active support was extended by commercial houses and upcountry dealers.

Pulses and rice varieties were leading among them, which showed all round flare up in prices partly on reports of pressure on ready supplies and partly on higher exports.

Physical activity, therefore, shrank to modest proportions as general consumers were not inclined to buy at higher levels and waited for the return of sanity to the daily trading. Unlike previous week, prices showed upward trend in trading and finished modestly higher on some of the essential counters early this week.

Market sources attributed the increase to interruption in arrivals from upcountry markets due to early week rain, but local brokers said holding back of stocks by local brokerage houses was one of the main reasons behind the price spiral.

However, general consumers stayed away and curtailed their daily intake in the hope that prices would stabilise around previous levels after supply position improved, they added.

What was more intriguing was an increase in prices of gram whole and gram dal, which had fallen sharply a week earlier owing to steady new crop arrivals.

Floor brokers said dealers in the interior were cornering the new crop, which in turn had increased their prices in the local market. Moreover, harvesting of new crop in the central Sindh was yet to start and was expected to resume by next month.

However, the arrival position was likely to improve by the middle of next month, which, in turn, was expected to stabilise prices, they said.

But some others said exporters of gram whole were in the market and if ban was not imposed on exports of the commodity until details of total production were available, prices could rise further.

During the last cropping season, the country had harvested a bumper gram crop but higher exports to India and some other countries pushed its prices up at the fag-end of the season.

Gram whole and dal are following in the footsteps of rice, whose prices are ruling at all-time peak levels despite bumper crop owing to large exports during the current year, they said.

The market advance was led by the pulses sector where prices of peas, moong and masoor were quoted higher by Rs50 to Rs300 per bag. But the largest rise of Rs350 was noted in gram whole on active buying made by the exporters and rumours of a short crop.

Rice varieties followed them under the lead of basmati and IRRI-6, which remained in short supply owing to active buying by private sector exporters. Basmati and IRRI-6 were leading among them, up by Rs150 to Rs180 per bag. IRRI broken also rose by Rs90 per bag.

Among the fine types, kernel was marked up by Rs200 on reports of fresh forward deals with the Gulf importers but sela type and broken basmati were held unchanged at previous levels.

Cereals also came in for active support from industrial users and were marked up by Rs50 to Rs90 for maize and jowar, while bajra remained pegged at the previous week's levels.

Oilseed sector also showed firm trend as crushers remained active buyers around the current levels. Among the major seeds, rape seed were quoted higher by Rs50 on reports of slow arrival of new crop from Sindh markets.

But on the other hand cottonseed fell by Rs25 on selling by some of lower Sindh ginners and falling demand and weak oilcakes market.

Til came in for fresh support from exporters and was quoted further higher by Rs100 per 40 kg, while castor seed was held unchanged amid slow trading.

Oilcakes ruled firm for the rapeseed cakes in sympathy with rise in rapeseed, while cottonseed cakes fell by Rs20 on selling by the speculative traders.—M.A.