July 30, 2007	Monday	Rajab 14, 1428

TRADING activity on the Karachi wholesale markets during the previous week was relatively slow as buying support showed a considerable decline followed by reports of an improvement in the supply position.

Unlike the previous weeks prices of essential items did not rise in a row but also fell on selling on some of the counters aided by comfortable ready position.

Arrivals from upcountry were on the higher side as compared to previous couple of weeks, which in turn did not allow fresh increase in prices on the one hand and triggered selling on some of the counters, on the other.

The notable feature was that bulk of stocks on the open market was released by leading importers who released a good part of their stuff as prices did not show further increase as most of them were expecting, dealers said.

They said the market decline on some of the essential counters was led by some type of pulses under the lead of gram, urad and masoor whole and masoor dal but other types were mostly traded at previous levels.

However, fall in the price of pulses, which had been trading at all-time high levels, has a negative impact on some other essential items whose prices either did not show any change or fell depending on the size of arrivals, they added.

Unlike previous weeks, stray activity was noticed on the rice counter, notably in IRRI types but fine varieties stayed on the higher side despite fall in foreign demand.

Bulk of the support on this counter came from locals as private sector exporters remained conspicuous by their absence as exportable surplus of IRRI type has been exhausted.

Market sources said private sector exporters are awaiting arrival of new crop sometime late next month or early September followed by reports that the new crop is expected to be on the higher side, surpassing last year’s record of 5.5 million tones.

Among other essential items, wheat and sugar did not show changes and remained stable around the previous levels followed by reports of improvement in arrivals both from upcountry markets and millers.

Industrial raw materials were actively trade as some local brokerage houses lowered their selling prices followed by reports of steady arrivals. Industrial demand was fully met at competitive rates, dealers said.

Pulses showed mixed trend amid alternate bouts of buying and selling.

While masoor, masoor dal and moong were quoted higher by Rs200 to Rs500 per bag, gram whole, gram dal urad and some other varieties were marked down by Rs20 to Rs25. Some others were traded at previous levels barring peas, which were quoted higher by Rs100 per 100kg bag.

Among other essential items, wheat suffered a modest decline of Rs10, desi sugar was quoted higher by Rs100, while white sugar did not show any change from the previous levels.

Activity on the rice sector was relatively slow owing to absence of exporters and as a result, prices of fine type basmati, including sela and kernel, were held unchanged at previous levels.

IRRI-6 was, however, an exception, which came in for support and rose by Rs40 on reports of damage to new crop in Sindh because of flash floods.

Among cereals, bajra was marked down by Rs25, while jowar, maize and barley were traded at previous levels owing to steady arrivals and a fall in local demand.

Guar seed on the industrial sector suffered a fresh fall of Rs25 per maund, but were quoted on the higher side owing to damage to crop in the Punjab belt.

Oilseed sector did not show much activity as prices of major seeds including rapeseed, cotton seed, til and castor seeds were firmly held at previous level amid slow trading.

Oilcakes again ruled unchanged for the rapeseed cakes, while cottonseed cakes fell by Rs50 per bag of 40 kg on selling prompted by larger new crop arrivals from Sindh.—M.A