June 30, 2008	Monday	Jamadi-us-Sani 25, 1429

PRICES of some essential items eased further on the Karachi wholesale commodity markets during the preceding week as supply position showed improvement owing to steady arrivals from upcountry trading centres.

However, dealers said release of fresh stocks by leading stock holders fearing further fall in prices was the main factor behind the fresh decline together with a considerable fall in consumer off-take.

However, prices of many essentials had shown gradual decline from the peak level hit during the last couple of weeks but were still higher as compared to their prices during the last couple of years, they said.

“Prices of some essential items could ease modestly from their higher levels but there is no possibility of major fall at least in near-future as stockists will try to keep them on higher side after holding back ready stocks”, said a leading broker.

He said commodity markets over a year were in the grip of traders who traded in them daily but never allowed prices to fall from their pre-determined level.

Market sources said general consumers and retailers did enter the market on essential counters after each decline and covered in part their immediate needs before a rebound.

Retailers and general consumers were happy over the fresh fall of Rs100-Rs200 per bag of 100 kg in IRRI type rice for the second week in a row but ready off-take was modest as consumers anticipated fresh decline in coming weeks, they said.

They said since the fixation of minimum export prices for all varieties of rice there was a relative lull on the export front, which in turn had eased the local prices.

Fine types basmati including kernel and sela, however, did not show any change from their previous levels for the second week in a row amid reports of falling export demand because of higher local prices, they said.

Although sugar prices tended modestly lower on renewed mill-selling followed by reports of a bumper crop of about 4.5 million tons, they remained on higher side at the retailers’ end.

On the other hand, wheat prices remained on higher side despite steady imports and release of stocks by local commodity dealers. In physical trading, wheat prices were quoted higher by Rs20–Rs35 per bag as it remained in the grip of local dealers.

In the pulses sector, prices of gram whole and gram dal, which were stable around previous levels, also rose by Rs100-Rs250 per bag in sympathy with fresh rise in prices of other essential items.

Beetle followed them, up by Rs300, but other varieties were traded unchanged under the lead of masoor. However, urad type was quoted lower by Rs125 on selling by an importer.

Sugar, though showed a modest rise of Rs20 per bag for the third week in a row, was among other essential items, which closed on the higher side, while desi sugar and gur were firmly held at last levels as supply matched the local demand.

Rice sector remained under pressure for the fourth week in a row as exporters are shedding their extra load on the wholesale market owing to problems on the export front.

Prices of basmati kernel, IRRI-6 and IRRI-9 and IRRI broken were quoted lower by Rs200 -Rs400 per bag but local demand remained modest as consumers were anticipating further fall in prices in coming weeks.

Cereals sector, which was ruling high on reports of pressure on supplies, came in for active selling followed by reports of steady arrivals from upcountry markets and fell by Rs50 to Rs425 for bajra, jowar and maize respectively. But barley was firmly held at the last levels.

Guar seed, on the other hand, showed a modest increase of Rs50 per bag on short supply of fine variety. Mill demand was also said to be on the higher side, which pushed its prices higher.

Cotton prices also showed modest fall of Rs50 per 40 kg on selling prompted by steady arrivals of the new crop.

Oilseed sector showed firm trend as prices of major oilseeds, mainly cottonseed and rapeseed, were held unchanged at previous levels but prices of castor seed and til, two major export items, were quoted higher by Rs25 to Rs100 on revival of export demand.

Oilcakes stayed unchanged for rapeseed cakes, while cottonseed cakes were marked down by Rs100 on selling triggered by reports of steady arrival of new crop.