April 30, 2007	Monday	Rabi-us-Sani 12, 1428

THE Karachi wholesale commodity markets last week remained under the grip of speculative forces as leading among them tried to grab new crop arrivals of some of the essential items for hoarding purposes.

Barring some varieties of rice, which showed fresh rise in prices on news of higher exports and pressure on local supplies, price change on the other counters were mostly modest and fractional.

Although wheat prices, for instance, showed a modest increase owing to larger buying by mills and commodity stockists, steady new crop arrivals from upcountry markets did not allow any major change in the previous price structure, dealers said.

However, they ruled out possibility of any major fall in prices of wheat despite reports of a bumper crop as the commodity has now assumed the role of one of the major trading items.

Availability of liberal bank credit facilities, commodity traders tried to build-up long positions on some of the essential items to sell them at the end of the season at higher rates.

According to the market sources, arrival of new wheat crop and some variety of pulses was fairly steady, but steady intake by commercial and brokerage houses did not allow any fall in their prices, they added.

Some of the commodity exporters are also said to be buying wheat for export purposes or to sell it to private sector exporters.

On the rice export front, physical shipments are being made to meet the deadlines as a rice loader remained in the port throughout the week loading the commodity against forward deal. Another to load 20,500 tons of rice is in the port.

Prices of rice on the wholesale market remained on the higher side owing to pressure on supplies. The arrivals of previous crop from the upcountry is also said to have dried up.

Whether or not local prices will fall from the current all-time high level after the arrival of new crop in September, is not clear as it will essentially depend on the size of the new crop, brokers said.

Commodity dealers said the entry of China in the rice export business and breakthrough in the African markets for IRRI varieties showed that the rice prices may not fall from the current highs during the next season also.

However, unlike previous week prices changes on most of the essential counters were orderly and did not reflect panic buying from the leading commercial trader. Private sector rice exporters, on the other hand, remained active buyers followed by reports of about 10 per cent increase in exports and to cover their forward sales.

IRRI-6, IRRI broken and coarse basmati were leading among them, which posted gains ranging from Rs15 to Rs100 per bag. On the other hand fine varieties including sela and kernel were traded at the last levels despite reports of pick up in foreign demand.

Pluses, on the other hand, did not show much change and were generally held at the last levels owing to improved supplies and release of fresh stocks by importers. Barring masoor dal, which was quoted higher by Rs100, all other types were traded at previous levels.

Wheat showed a fractional decline of Rs5 as steady new crop arrivals from the upcountry markets and falling mill demand kept prices in check. Reports of a bumper crop also curtailed mill buying as there were no fears of any shortage.

Cereals on the other hand showed mixed trend amid alternate bouts of buying and selling. jowar came in for active selling and fell by Rs5 to Rs10, while maize, bajra and barley were traded around previous levels.

Guar seeds, lacked normal trading interest by processors owing to higher asking prices. While Punjab type was held unchanged, Sindh and some Punjab varieties were quoted lower by Rs75 per bag of 100 kg.

On the oilseed sector, rapeseed came in for renewed support from the oil mills followed by reports of a short crop in Sindh and posted gains ranging from Rs25 to Rs100 per 40 kg.

On the other hand major seeds, notably castor seed and til were held unchanged in the absence of foreign demand and slow arrivals from upcountry markets.

But oilcakes both rapeseed cakes and cottonseed cakes remained under pressure in sympathy with the hedge market on profit-selling by speculators and fell by Rs10 to Rs50 respectively.—M.A