THE price trend of essential commodities on the Karachi wholesale markets remained downward during the preceding week as the ready demand was slack due to the war in Afghanistan and the consequent panic.

Arrivals of most of the commodities from the interior markets were normal and did not allow major price changes as supply position too, remained comfortable.

What seems to have caused panic-selling on some of the essential counters was the selling from locals and the absence of strong demand from Punjab traders, who stayed away due to war. Local buying also remained at a low ebb as both the retailers and the wholesalers covered nearby positions only and did not go beyond a week or so supplies.

Although price fall was orderly, but indications were that any slowdown in the import of some essential items, including pulses could cause price flare-up in the coming weeks, traders said.

They said the local traders were watching the Afghan situation and the impact of the US attacks and Taliban reaction to the changed war scenario.

There were, however, no reports of holding back of stocks by the commercial or the brokerage houses at least for the near-term as current price line suggest, they added.

Some of the brokers fear a price flare-up on the pulses counter, notably those, which are imported including Masoor and Masoor Dal because of the shipment problems, if the war drags on.

Prices of imported stuff could rise from the current level because of the supply problems. The interesting feature was that there were no reports of hoarding by any of the quarters and the flow of supplies from godwons to markets was fairly smooth, dealers said.

All major essential items tended lower partly because of the slow demand and partly due to oversupply in the absence of demand from the Punjab traders.

The market decline was led by wheat, which was lower by Rs15 per 100kg bag on selling prompted by the reports of larger arrivals from the interior markets and slowdown in exports.

Sugar followed it as both the commercial importers and the mills remained active sellers in a bid to clear the backlog before the new crushing season starts. It fell by Rs40 per bag but gur and desi sugar were traded at the last levels.

Pulses showed divergent trend amid alternate bouts of buying and selling. While gram dal managed to finish with a modest rise of Rs50 on active demand peas, gram whole, tuver came in for stray selling and were quoted lower by Rs25 to 60 per bag.

Masoor and urad were an exceptions, which were traded at the last levels. Guar also followed the lead of pulses and maintained the previous levels as mill-demand failed to pick up ahead of new crop arrivals. All types were again held unchanged. Barring bajra, which managed to finish higher with a gain of Rs50, all other cereals including maize and jowar were held unchanged for want of buying support.

Oilseed sector showed mixed trend. While the major seeds including cottonseed and rapeseed did not show any change from the previous levels, castorseed and til came in for stray selling followed by the reports of fall in export demand.

While the castorseed fell by Rs5 to 25, til was marked down by Rs15. Groundnut was again not traded on account of short supply.

Oilcakes maintained the previous level for rapeseed cakes, while cottonseed cakes rose by Rs5 in sympathy with firm oil market.—M.A