January 14, 2008	Monday	Muharram 04, 1429

A MIXED price pattern was witnessed on the Karachi wholesale markets last week where prices of some essential items were quoted lower, while others maintained their upward drive on fresh buying by retailers.

While flour prices continued to be higher, wheat showed a modest fall of Rs25 per bag as supply position improved followed by release of a substantial quantity of the commodity from official stocks, dealers said.

Containing wheat prices well below its peak level signals that normalcy could be restored to this sector, which would have sympathetic impact on other essentials’ counters, they said.

Sugar followed the trend on reports that some local mills had sold a substantial quantity of the produce to local agents from the new crop stocks, which in turn prompted selling from some of the local stockholders, they said.

Other factor which contributed to its decline was reports that the Trading Corporation of Pakistan may release some of its stocks on the open market to keep prices stable around the current levels, they added.

Pulses also remained under pressure and prices of some varieties were quoted lower as local stockists indulged in selling. Gram whole was leading among them.

On the other hand, there was no easing on other counters of essentials, including rice and its price remained on the higher side followed by reports of slow arrivals from Sindh markets.

Reports of a short crop in the Sindh rice belt was said to be the main cause of the short crop, while reports of holding back of stocks by some upcountry dealers was said to be another factor. There was a relative calm on the export front in the absence of fresh import orders because of higher local prices amid reports of slow ready off-take by retailers.

Some brokers said the leading rice dealers were selling the commodity on local market as prices were around the export levels and exporters were selling their stocks on local markets rather than to their foreign buyers with a fair profit margin.

Pulses lacked normal support and were quoted around previous levels barring gram whole, which was marked down by Rs200 per bag. Masoor, moong, and masoor dal and some other varieties were traded at previous levels.

Among other essentials, Irri-6 maintained its upward drive on strong export demand and was quoted further higher by Rs150 per bag. Whereas fine varieties, both sela and kernel were held unchanged at previous levels amid slow export demand.

Sugar, on the other hand, came in for fresh selling followed by reports of steady arrivals from mills and was marked down by Rs200 to Rs220. per 40 kg bag amid active trading as some dealers build-up long positions at lower rates for obvious reasons.

But, on the other hand, desi sugar and gur came in for active support and were quoted higher by Rs100 per 40 kg. Bulk of the support, dealers said, originated from exporters to the neighbouring country.

Cereals were again traded at higher levels followed by reports of slow arrivals from upcountry markets under the lead of bajra, which was quoted further higher by Rs200 per bag. Other cereals, including maize, jowar, barley and guar seeds were traded at previous levels as supplies matched local demand. Ready off-take was on the higher side.

Oilseed sector showed firm trend as prices of both rapeseed and cottonseed were marked up by Rs.10 to Rs50 per 40 kg amid active trading.

Among export items, til remained in active demand and rose by Rs100, while castor seed was firmly held unchanged at the last levels.

Oilcakes showed firm trend as prices of both rapeseed and cottonseed cakes were quoted higher by Rs10 to Rs25.—M.A.