September 03, 2007	Monday	Sha'aban 20, 1428

PRICES of some varieties of pulses on the Karachi wholesale commodity markets last week were quoted lower followed by reports of selling by leading importers but some others, on the other hand, rose modestly.

There was no sign of pre-Ramazan price flare-up on any of the essential counters apparently because of official efforts to keep prices stable at current levels.

Physical activity was, therefore, on the lower side, which in turn kept price stable mostly around previous levels and increase in prices was reported where supplies did not match the ready demand.

The success of the official Ramazan package will largely depend on comfortable supply position without any interruption to keep speculative forces away from physical activity, dealers said.

Arrivals of essential items were also on the higher side, which in turn checked any speculative increase in prices, notably on the pulses sector.

But some dealers said the advent of the holy month of Ramazan is still about two weeks away and whether or not price rise will be seen by the next week.

They attributed the decline in prices of gram whole and masoor whole and dal to selling by the importers amid falling local demand as well as fresh arrivals from the upcountry markets.

There was a relative quiet on the sugar front followed by reports that a modest consignment of about 3,000 tones had been imported from India through Wagah but there was no immediate impact on the wholesale price of the commodity, market sources said.

Meanwhile, wheat remained under pressure as mills continued to build up long positions at the current rates fearing increase in prices during Ramazan in some of its byproducts.

However, ban on export of flour by ships did not have negative impact on wheat prices, rather they rose on reports that fresh arrivals from upcountry markets have almost dried up, dealers said.

Prices on the rice sector did not show any change followed by reports of steady new crop arrivals of IRRI type from Sindh. Market sources said as rice harvesting had just started, it would gather momentum in the coming weeks.

Unlike previous weeks, price changes on the essential counter were orderly amid falling local demand and steady arrivals from upcountry markets after mid-week.

Stray activity remained confined to pulses sector but price changes were on both sides of the fence. While masoor dal and masoor whole imported from various countries, suffered sharp fall of Rs100 to Rs200 per bag amid reports of falling demand, peas and gram whole rose by Rs25 and Rs100 on late week selling.

After early rise, others including urad and moong types, finally settled around previous levels followed by reports of fresh arrivals from upcountry markets.

Wheat was, however, an exception, which though rose by Rs10 followed by reports of ban on export of flour via sea, but dealers said it should have fallen owing to ban on flour but instead it rose.

They attributed the rise to slow down in arrivals from upcountry markets as stockists there held on to their positions in an apparent effort to sell it at much higher rates.

Sugar prices remained stable around previous levels despite reports of customs clearing problems relating to a modest consignment imported from India.

Although quality of the imported stuff has been cleared by an official agency, it may find its way into the market possibly by next week after the customs clear it.

The impact of Indian stuff will be known by the next week after its importer offered it for sale on the open market. But some brokers said the quantity is too small to push prices lower.

Rice sector lacked normal trading interest as exporters remained conspicuous by their absence and much of the activity was confined to local retail buying.

Cereals followed them as prices of bajra, maize, jowar and barley were traded at previous levels throughout the week as supplies met the local demand.

Major oilseeds, including cottonseed, rape seed, til and castor seeds also lacked normal buying interest and remained unchanged from the previous levels and so did oilcakes in sympathy.—M.A.