February 18, 2008	Monday	Safar 10, 1429

PHYSICAL activity on the Karachi wholesale markets during the preceding week remained relatively slow as brokerage and commercial houses were not inclined to lower their asking prices.

However, unlike previous weeks the increase in prices were mostly orderly as speculative traders remained conspicuous on the perception that retailers will stay away instead of making fresh buying at the higher levels, dealers said.

The other factor which slowed down general buying was hope of fall in prices of some essential items after reports of steady arrivals from upcountry markets, they added.

But wheat prices showed softening followed by reports of arrival of two more ships with 40,000 tons of the commodity during the week and its steady dispatch to relevant quarters, they said.

Wheat prices could ease further as more supplies were given to mills and fall in flour prices would be reflected in its wholesale price also, they said.

“Wheat has now assumed a role of trading commodity on the open market and the leading stockists, who had cornered local supplies, are releasing them on the open market at higher rates”, market sources said.

The official sales of wheat flour and sugar at Rs9 and Rs15 per kilo and subisidised sale of pulses and cooking oils through utility stores are expected to have a sympathetic bearish impact on the wholesale prices also, they added.

On the other hand, sugar prices remained stable around previous levels as steady arrivals from Sindh mills met the local demand and prevented any further rise and fall.

But the rice sector remained tight as physical shipments of the commodity to various destinations were maintained on the higher side to meet the export deadlines.

On the industrial raw material front, prices rose on some of the counters as arrivals from upcountry markets were slow and did not match the local demand.

Wheat prices led the decline on the essential counters as it fell by Rs20 to Rs25 followed by sugar desi, which was marked down by Rs300 on selling prompted by larger new crop arrivals from Sindh market. White sugar and gur on the other hand were again quoted unchanged.

On the rice sector prices of Irri-6, Irri broken and basmati broken showed fresh rise ranging from Rs100 to Rs200 per bag in that order followed by reports of fresh export enquiries.

While fine types basmati including sela and kernel were again traded at the last levels despite reports of steady demand from foreign importers.

Pulses sector did not show much, but prices remained on higher side. Masoor whole and masoor dal were exceptions, which came in for fresh support and were quoted higher by Rs150 to Rs200 per bag. Others were traded unchanged barring gram whole and dal, which were marked down modestly lower.

Cereals lacked normal support followed by reports of steady arrivals from Sindh markets. As a result, prices of bajra fell by Rs40 but on the other hand maize rose by Rs175 to Rs200 on reports of slow arrivals and covering purchases made by some of the leading processors.

Among industrial raw materials, guar seeds were marked down by Rs100 per bag of 100 kg, while others were traded at previous levels.

Major oilseeds, including cottonseed, rapeseed, and castor seed were firmly held at previous levels as supplies matched the ready demand of crushers.

But til maintained its upward drive on fresh export orders and was quoted further higher by Rs150 to Rs250 per 40 kg amid active trading.

Oilcakes were traded lower by Rs30 to Rs50 per 40 kg for both cottonseed and rapeseed cakes on selling by local stock holders followed by reports of steady arrivals from interior markets.—M.A.