February 25, 2008	Monday	Safar 17, 1429

THE post-election week on the Karachi wholesale commodity markets showed a virtual price flare-up on counters of some essential items as pent-up demand remained unsatisfied till the close of the week.

Much of the activity remained confined to the pulses sector where the prices rose to all-time high levels under the lead of masoor whole and masoor dal.

While masoor whole was quoted higher by Rs1,150 per bag of 100 kg, its dal rose by Rs1,200 as local traders and importers held on to their unsold stocks, dealers said. Urad also rose by Rs350 per bag. But some others said leading importers did not open fresh L/Cs owing to election uncertainties, which resulted in shortage leading to an unprecedented price flare-up.

Wheat and some varieties of rice were also traded at record high levels as exporters remained active buyers to meet their shipment deadlines.

Arrivals from the upcountry markets early last week were on the lower side because of transport problems owing to general elections.

Market sources said commercial houses and leading brokers apparently awaited the smooth transaction of power to the elected members and seemed to be in a mood to set their trading priorities after the formation of governments at the centre and the provinces.

Unlike pre-election weeks, prices soared to new peak followed by reports of panic buying by general consumers amid fears of law and order situation. Prices of most essential items were quoted sharply higher as compared to previous levels, they added.

But in some cases declined from the previous levels on selling by the local stockists, sugar white was leading among them followed by reports of higher production and selling by mills which fell by Rs50 per 40 kg, dealers said.

However, prices of wheat, which has a chain sympathetic impact on other essential counters, remained stable around the previous levels after mid-week either-way movements, but rose at weekend, they added.

During the week two ships loaded with about 40,000 tons of wheat berthed and unload the cargo, a good part of which had already reached the flour mills, they said.

Reports that harvesting of wheat had started in lower Sindh, where the crop is sown a bit earlier, did not have any impact on the ruling prices as the new crop would take some time to reach the market. Prices of wheat were, therefore, quoted higher by Rs75 per bag after having remained unchanged at the last levels for last couple of weeks.

Steady physical shipment of rice under the previous deals, the rice market remained tight amid reports of falling ready stocks and holding back of stocks by the local dealers and upcountry traders.

Prices of all types of rice remained at their highest level and the local consumers could not benefit from a record crop during the current season, market source said.

Owing to higher selling prices on the world markets, which is said to be the main reason behind the record exports, local prices rose in sympathy. Never before in the wholesale market, prices of all types of rice had touched the current levels, they added.

While fine types of basmati were quoted higher by Rs200 per bag, the largest increase of Rs500 was noted in the broken IRRI type.

Other types were traded at previous levels. Sela type of basmati was an exception, which fell by Rs100 per bag on slack demand.

Some industrial raw materials on the other hand showed a softening trend as demand from the end-product users remained on the lower side owing to electioneering by some top commodity traders.

Guarseeds and jowar were leading among them, which were quoted lower by Rs25 to Rs50 on selling prompted by steady arrivals from upcountry markets.

Major oilseeds, on the other hand, did not show much change as supplies were enough to meet local demand. As a result, prices of cottonseed, rapeseed, til and castor seed were firmly held at the last levels.

Oilcakes, on the other hand, showed divergent trends. While cottonseed cakes rose by Rs20 to Rs25, rapeseed cakes fell by Rs20 on steady arrivals from the interior markets, dealers said.—M.A.