July 09, 2007	Monday	Jamadi-us-Sani 23, 1428

PRICES on the Karachi wholesale commodity markets last week maintained their upward drive as supplies failed to meet the rising demand both from the retailers and the general consumers.

The market advance was again led by the pulses sector where another price flare-up was witnessed followed by reports of tight ready position. Some of the varieties were quoted as high as Rs300 to Rs400 per bag.

Apart from a considerable decline in arrivals from upcountry markets because of fresh spell of monsoon and flash floods in the upper Sindh belt, the other aiding factor was reports of holding back of stocks by some leading importers, dealers said.

They said that persistent rain in the Sindh grain belt has disrupted supplies from upcountry markets, mainly Upper Sindh, which in turn continued to add to the existing price flare-up.

“I don't foresee any easing of prices in near-future as unloading of pulses at the port has been delayed for fear of rain each day according to weather forecast”, they added.

However, physical activity remained on the lower side of the weekly average as the general consumer either curtailed his daily intake of essential items hoping fall in prices or awaited normalisation of supplies from interior trading centre after the end of wet spell, they said.

The price flare-up was led by the pulses sector, notably the imported stuff where prices were quoted higher by Rs300 to Rs400 per bag under the lead of masoor and masoor dal.

An idea of price flare-up may well be had from the fact that so far neglected peas led the list of price flare-up on the pulses counter, which surged by Rs650 per bag, brokers said.

Unlike the previous weeks, rice sector remained neglected amid reports that stocks of old crop were exhausted as bulk of exportable surpluses had already been shipped.

As a result, prices of both IRRI and basmati varieties stayed on the higher side amid relatively slow ready offtake by the general consumers.

Prices of major industrial items on the other hand stayed around the previous levels as wholesalers did not opt for fresh covering purchases at higher levels followed by reports that supply position would improve after the end of current spell of rain.

Prices of almost all essential items rose under the lead of pulses, notably imported types of masoor whole and masoor dal, which rose by Rs300 to Rs400 per bag of 100 kg followed by gram whole, which rose by Rs50 but its dal was traded at the previous levels. Urid prices also rose by Rs63.

But dealers said the largest increase in a week was recorded in peas, which were quoted higher by Rs650 per bag followed by reports of interruption in imports. Beetle prices were marked up by Rs150 per bag.

Sugar and wheat followed them rising by Rs50 toRs70 per bag as supplies failed to meet the local demand. A considerable fall in arrivals from the upcountry market was another aiding supporting factor.

Rice sector again stayed dormant followed by reports of falling local stocks. Prices of sela and kernel types of basmati were again held unchanged by IRRI-6 quoted higher by Rs30 per bag.

Cereal sector lacked normal support and prices of maize, jowar, barley and bajra were held unchanged at the last levels amid slow trading. Guar seeds were an exception, which fell by Rs50.

Oilseed sector, on the other hand, showed firm trend as prices of rapeseed rose by Rs25 to Rs65 for all varieties owing to fall in arrivals from the Sindh markets and higher demand by the oil mills.

But on the other hand cottonseed, castor seed and til prices were firmly held at the last levels despite fall in oilcakes. Ready activity was on the lower side of the weekly average as crusher anticipating further decline in prices kept to the sidelines.

Oilcakes on other hand remained under pressure partly amid falling demand and were marked down by Rs10 to Rs50 for both rapeseed and cottonseed cakes respectively.—

M.A.