July 16, 2007	Monday	Jamadi-us-Sani 30, 1428

ALTHOUGH the supply position showed a modest improvement on the Karachi wholesale commodity market during the previous week after interruptions caused by rains and flash floods in the markets of interior Sindh, prices of essential items did not ease despite selling by some of the stock holders.

Pulses again led the market advance, although price flare-up was not that aggressive as it had been during the last couple of weeks as supply gaps were filled in here and there at each rise, brokers said.

Other supporting factor was said to be lower imports from various countries during the post-budget trading as importers fearing some fiscal duty changes did open fresh letters of credit, they said.

According to a leading importer of pulses, about a dozen Lcs had been opened during the last couple of weeks and some of the consignments were expected to reach here in the next couple of days.

But it is too early to say that fresh imported stuff would stabiles prices at the retailers’ level or not, as much would depend on the landing import cost of the commodity plus profit margin on investment, some others said.

Sugar prices, which had been stable around Rs27.50 per kilo in line with official outlets through the Utility Corporation, also showed sharp increase after millers raised their ex-factory prices and sought official help to clear their backlog of unsold stocks after making a buffer stock of half-a- million tones.

Commodity dealers said pent up demand appeared to be the chief reason behind the fresh price flare-up on some of the essential counters as those consumers who kept to the sidelines a week earlier awaiting fall in prices resumed their retail buying, they said and added that as prices stayed on the higher side they had no option but to buy commodities at the prevailing prices.

However, retailers did go for all out buying in an apparent attempt not to fuel a fresh price flare-up. However, the increase was not contained as stockists held on to their stocks for a better price, they added.

The activity on the rice sector was light as bulk of the exportable surplus had already been shipped against forward deals. As a result, there had not been any physical shipments during the last couple of weeks.

Prices of both IRRI and basmati varieties, though remained at a record high, did not show any change for the second week in a row, although some of them showed modest decline on late selling.

There was no significant change on the industrial raw material sector where prices generally remained stable as supplies matched the demand.

All varieties of pulses both local and foreign barring gram wholes and gram dal, were quoted further higher under the lead of masoor whole and dal, which rose by Rs200 and Rs100 per bag of 100 kg.

They were followed by moong, urid and some other types, which posted gains ranging from Rs20 to Rs100 per bag but ready offtake was light.

Sugar prices maintained their upward drive as arrivals from the millers were below the weekly average. Both gur and sugar prices were quoted higher by Rs100 to Rs200 per 40 kg. Desi sugar was, however, held unchanged.

After initial rise on active mill demand, wheat prices eased from the peak levels on selling prompted by reports of steady arrivals from upcountry markets and was marked down by Rs25 after early rise of Rs20 per bag.

Barring a fresh decline of Rs10 in IRRI-6, rice sector remained dormant and prices of both sela and kernel varieties of basmati were held unchanged at the last levels.

Among cereals, bajra rose by Rs25, while barley, maize and jowar were traded at previous levels as supplies matched the demand owing to steady arrivals from upcountry markets. Guar seeds were also quoted higher by Rs50 per 100 kg on short supply.

After several dull trading weeks, oilseed sector showed signs of activity under the lead of rapeseed, which rose by Rs25 to Rs35 per 40 kg to settle at the new higher levels. Pressure on stocks was the chief reason behind the fresh price flare-up.

Til came in for active support from the private sector exporters and were quoted higher by Rs50 per 40kg, while castor seed was held unchanged owing to slack demand from local processors.

Oilcakes showed firm trend as prices of both rapeseed and cottonseed cakes were quoted higher followed by reports of short supply but trading was active.—M.A.