April 23, 2007	Monday	Rabi-us-Sani 05, 1428

PRICES of essential items on the Karachi wholesale markets did not show any softening trend during the previous week despite reports of steady arrivals of new crops from upcountry markets.

Some varieties of pulses, notably imported ones, again led the market advance followed by reports of short supply. Some of them rose sharply higher under the lead of urad and masoor.

Ready offtake on most of the essential counters was relatively slow as consumers were not inclined to make large buying hoping a decline in prices after the supply position improves further.

Market sources said harvesting of wheat and some varieties of pulses, notably gram and masoor, were well in progress in major growing areas, but prices did not show any change as generally witnessed after steady arrivals.

Unconfirmed reports said leading stockists were in the process of building long positions at the current levels on wheat and pulses sectors being liberally financed by banks under the commodity trade head, they said.

But instead of selling them in open market on normal profit, leading stockists among them have resorted to hoarding to sell at higher levels after the crop season was over, they added.

“The entry of hoarders during the last couple of years in the trade has almost changed the pattern of commodity trade and the general consumer is at the receiving end”, said a leading commodity broker.

That is perhaps why instead of fall in prices at new cropping season, prices tended higher than falling under the weight of steady arrivals from some of the interior trading centres. Wheat or sugar prices, for instance, should have fallen from the current higher levels but rather they stayed on higher side amid slow trading.

Some brokers attributed the fresh modest rise in wheat prices partly to stockists buying and partly to short-covering by some of the private sector exporters both from the new and old crops.

During the week, physical loading of wheat against forward export contract by a private sector exporter was maintained on higher side along with rice.

Prices of some industrial raw materials also showed modest increase followed by reports of damage to current crop owing to late rain and in some cases were quoted sharply higher, they said.

Among the essentials, imported type of pulses, notably came in for active support from the upcountry dealers and were quoted higher by Rs175 to Rs250 per bag for uard, masoor dal and moong followed by masoor whole which rose by Rs50.

Rice sector followed them as prices of fine types of basmati and sela were quoted higher by Rs100 to Rs200 per bag followed by IRRI-6, which rose by Rs10. Kernal variety of fine basmati did not show any change and was held at the previous level.

Market source said steady shipments of the commodity under forward deals followed by local covering purchases by exporters were the chief reasons behind the current price flare-up.

Wheat showed a modest rise owing to steady new crop arrivals and was quoted higher by Rs5. Physical shipment of the commodity against export deals was said to be one of the factor keeping prices higher despite new crop arrivals.

There was, however, a relative quiet on the sugar front as prices remained stable around previous levels followed by reports of steady arrivals from the local mills.

Bajra came in for active selling among the cereals and fell by Rs.50.00 per bag followed by reports of steady arrivals from Sindh markets and a considerable fall in local demand.

Maize, jowar and barley on the other hand did not show any major change as supplies matched the demand. Ready business was, however, slow.

Oilseed seed sector showed quiet a steady trend as prices of major seeds, notably cottonseed, and rapeseed were firmly held at the last levels amid active ready offtake by the crushers.

But on the other hand til, one of the major export items, rose by Rs50 per 40 kg but on the other hand castor seed did not show any change despite reports of active buying by the exporters.

Oilcakes remained dormant amid reports of falling demand. Prices of both cottonseed and rapeseed cakes were firmly held at the last levels. — M.A.