October 22, 2007	Monday	Shawwal 9, 1428

POST-Eid holiday mood prevailed on the Karachi commodity wholesale markets during the last week as both retailers and wholesalers kept to the sidelines and did not make fresh commitments even on the essential counters.

Physical activity during the holiday-shortened week was light and mostly confined to some essential industrial raw materials, mainly oilseeds, as prices of some of them showed modest increase.

The wholesalers, on the other hand, were busy clearing a good part of their stocks of essential items after Eid holidays rather than making fresh commitments on any of the counters.

The rice sector, which came in for heavy battering on active selling by local stockists followed by reports of some problems on the export front, notably an increase in import duty by Rs21.50 per kilo by Iran on basmati type, stayed firm at the previous levels, dealers said.

Pest attack on the rice crop at the harvesting time causes major reduction in per acre yield, market sources said and added that fears of a short crop had stabilised prices around previous levels.

Other sources said that damage to the Sindh crop was nominal and indications were that the province would harvest another bumper rice crop this season. A bumper crop was also harvested in the last season, but excessive exports both of Irri and basmati types had raised the local prices to an all-time high which were still well above the normal rates.

Market sources and general consumers were expecting sharp fall in rice prices during the current season, however, reports of pest attack had so far failed to bring them down to early last years’ levels.

Because of high prices of rice varieties at local level, which were well above the export parity level, were one of the reasons behind slow export and fresh deals, they added. The post-Eid buying on some of the essential counters, notably pulses and rice, caused increase in their prices as supplies did not match the local demand owing to fall in arrivals from upcountry. The reason behind the fall in arrivals is attributed to the increase in freight rates.

The largest rise of Rs300 to Rs700 per bag was recorded in kernal type basmati partly on local pre-Eid demand and partly to reports of fresh export deals. The Irri-6 variety was marked up by Rs25 while other varieties were traded at previous levels.

Pulses followed them under the lead of gram whole and gram pulse and their prices rose from Rs200 to Rs300 per bag of 100 kg. Masoor, masoor pulse and moong followed them, and posted gains ranging from Rs100 to Rs250. On the other hand beetle and urad came in for active selling and were marked down by Rs125 to Rs190.

Sugar prices remained stable at previous level; wheat was quoted higher by Rs50 on the wholesale market despite official claim of fall in flour prices. Gur was an exception, which was quoted lower by Rs300 per 40 kg followed by reports of slow demand from Afghanistan.

Barring a fresh increase of Rs100 per bag of barley on export demand and slow arrivals from upcountry market, cereals prices under the lead of maize, jowar and bajra held at previous levels.

The oilseed sector also lacked crushers’ support as prices of major seeds, including cottonseed, rapeseed and til, were held unchanged at the last levels amid reports of comfortable ready position.

Castor seed was, however, an exception, which came in for active support both from local crushers and foreign buyers after a relative lull for the last couple of weeks and were quoted higher by Rs50 to Rs100 per 40 kg bag.

Oilcakes ruled unchanged for the rapeseed cakes, while cottonseed cakes were quoted higher by Rs10 per bag on active local demand.—M.A