QUIETER conditions prevailed on the Karachi wholesale commodity markets as there was no pre-Ramazan panic-buying from any quarter in the backdrop of a comfortable ready position.
Unlike the previous years, when prices of essential items soared on speculative buying there was no evidence of the presence of anti-market forces on any of the counters.
Prices of rice, for instance, remained stable despite reports of physical shipment against the firm export orders, thanks to steady new crop arrivals from the Sindh markets, brokers said.
After early rise, sugar prices eased later on selling triggered by the reports of new crop arrivals. Prices showed fall ranging from Rs40 to 60 per bag.
After a gap of about five weeks, rice exports resumed during the week as a ship was in the port and was in the process of completing its job before the advent of the holy month.
Brokers said owing to reports of another good rice crop, the export business is expected to pick up further despite Afghan war and some allied problems, including the reluctance of foreign buyers to open letters of credit because of fears about delay in shipments.
Prices of some of the essential items did rise but orderly as their were no reports of interruption in supplies and pressure on the ready supplies, which in turn discouraged panic-buying.
Arrival from the upcountry were fairly steady as some of the local brokerage houses tried to build-up long positions before the advent of the holy month of Ramazan to forestall any speculative increase before Eid.
Dealers said what seems to have discouraged speculative rise even on the essential counters were the reports of a comfortable ready position, thanks to steady arrivals and no hoarding by commercial or brokerage houses.
Among the essentials, sugar fell further lower by Rs40 to 60 per bag of 100kg on active local selling prompted by reports of rise in arrivals from the upcountry markets. Arrivals of new crop from Sindh mills were active but failed to meet the pre-Ramazan demand from the wholesalers.
Desi sugar and gur also attracted selling in sympathy amid reports of new crop arrivals from the upcountry markets, notably Sindh trading centres and suffered fall ranging from Rs100 to 200 per bag. But gur rose by Rs100, while desi sugar was traded at the last rates.
Pulses showed quiet trend amid slow ready offtake but gram whole, moong, gram dal and some others came in for renewed selling and were quoted lower by Rs25 to 50 per bag amid active ready trading.
Other imported varieties were held unchanged barring beetle which came in for stray buying and rose by Rs40 per bag. All others were held unchanged, and so did masoor whole.
Rice sector also followed the lead of other essentials as prices of basmati sela type consolidated the last week gains amid good demand from the local export houses. But IRRI broken came in for active support and was quoted higher by Rs50 per bag.
Wheat also showed firm trend amid reports of fresh export business and was quoted further higher by Rs5 despite steady arrivals from the upcountry markets.
Guar followed the lead of other raw materials and fell by Rs60 on renewed selling owing to steady new crop arrivals. The harvesting of the new crop has just started.
Barring bajra, which rose by Rs100 against previous week, all other cereals including maize and jowar were held unchanged for want of buying support.
The oilseed sector showed quietly steady trend as all major seeds including the rapeseed and cottonseed came in for active two-way activity. While Dadu type rose by Rs5 to 10 followed by the reports of firm oil markets, cottonseed maintained their previous levels owing to steady cake market.
Other major oilseeds including til came in for stray support, despite reports of fall in exporters demand and finally ended unchanged after early rise. But the castorseed rose by Rs5 to 50 on the revival of export demand.
Oilcakes came in selling at the higher levels and were marked lower by Rs5 to 15 for both rapeseed and cottonseed cakes on renewed selling followed by reports of steady arrivals.—M.A
