May 19, 2008	Monday	Jamadi-ul-Awwal 13, 1429

EXCEPT for wheat which showed a modest fall, prices of all other essentials on the Karachi wholesale markets soared last week as supplies lagged far behind the ready demand consequently leading to fresh spiral in rates.

Physical activity on the ready counter was relatively slow as consumers only met their minimum weekly demand amid hopes of fall in prices after improvement in supply position.

Arrivals from upcountry markets were slow, which, in turn, exerted fresh pressure on local supplies and consequently prompted rise on the essentials’ counters for the third month in a row, dealers said.

The market advance was again led by the rice sector where prices of all types rose in unison under the lead of super basmati, which was quoted higher by Rs1,000 per bag of 100 kg. The prices of IRRI and basmati were quoted higher by Rs100 to Rs300 per bag of 100 kg.

The largest rise of Rs600 to Rs1,000 per bag was recorded in super and kernel basmati as ready supplies lagged far behind the rising demand. Another fine variety sela was also quoted higher by Rs215 and so did some others.

Market sources said hoarders and stockists of rice were not loosing their grip over the selling prices and each week released calculated amount of supplies on the market to keep pressure on the ready markets.

They said speculative traders had also sidelined the private sector exporters most of whom found it difficult to honour their export commitments owing to higher local prices.

As a result, physical shipments of rice remained suspended as the prevailing rates were much higher than their export parity levels. Some of them were shifting their forward export orders to the new crop due in early September, they added.

The fresh price spiral on the rice counter had a sympathetic bullish impact on other essential items, mainly pulses bulk of which is imported. Widely used varieties moong, masoor and urad were leading among them. But the important feature of week’s trading was that the record gram crop harvested recently also followed the general market trend and showed sympathetic increase for the second week in a row, dealers said.

Higher export of the commodity to India for the second consecutive year was believed to be the reason behind the current increase in prices.

After having touched the peak level of Rs2,000 per bag plus during the previous week, wheat prices eased from the all-time high levels and dealers said further fall was expected after steady new crop arrivals from upcountry markets.

Pluses followed them as imported stuff among them showed fresh price flare-up ranging from Rs150 to Rs250 per bag in moong, urad and gram whole.

On the other hand, most imported types increased further under the lead of masoor whole and masoor dal, which were quoted higher by Rs500 followed by beetle. But new crop gram dal did not show any change.

Sugar maintained its upward drive and was quoted higher by Rs50 to Rs110 per 40 kg, while gur and desi sugar were held unchanged at the last levels.

Cereals showed firm trend under the lead of bajra, jowar and barley but maize came in for active selling and was marked down by Rs80 followed by reports of new crop arrivals.

Cotton prices posted a fresh rise of Rs75 per maund followed by reports of lower stocks with the ginners and active mill demand but ready off-take was modest as ginners were reluctant sellers anticipating fresh rise in prices in coming sessions.

Other major seeds showed firm trend as prices of rapeseed, til and castor seed were quoted unchanged at the last levels as supplies matched the mill demand. But cottonseed suffered a modest fall of Rs25 per 40 kg on slack mill demand.

Oilcakes, on the other hand, posted gains ranging from Rs25 to Rs70 for both cottonseed and rapeseed on active support extended by oil mills.—M.A.