THE WHOLESALE commodity markets in Karachi, showed quietly easy trend during the last week as local commercial houses were sellers on some essential counters amid falling demand.

Pulses led the market decline as followed by wheat and some other varieties including rice followed by reports of comfortable ready position.

But sugar was an exception, which showed sharp rise of Rs200 to Rs230 per bag despite larger unsold stocks lying with the millers. Pent-up ready demand from the dealers and reports of holding back of stocks was claimed to be the chief bullish factor for triggering the price flare-up.

Dealers said Punjab buyers were conspicuous by their absence for the second week in a row, which in turn has a negative impact on the price line. Local demand was also below average owing to easy ready position.

They said over the last couple of weeks demand for essential items is progressively falling, partly because of comfortable supply position and due to the absence of leading market operators.

The interesting feature was that both commercial houses and brokers did not indulge in building up long positions even on the essential counters apparently anticipating easy supply position in the weeks to come.

Arrivals of rice from the upcountry markets were fairly steady and as a result the price of IRRI varieties remained depressed despite larger physical shipments over the week against the deals already signed.

Two rice loaders remained in the port loading the commodity and some more were due from the Gulf area during the week to load a substantial quantity, dealers said.

The softening of prices was attributed to larger arrivals from Sindh markets and some hasty selling by local brokerage houses amid a considerable decline in local buying.

But on the other hand fine types including sela and kernal basmati varieties were traded firmly followed by the reports of fresh sizeable export business to both Gulf and European centres, they added.

Wheat prices on the other hand showed modest decline of Rs20 despite reports of good export prospects to Afghanistan and some other countries with which export talks are said to be in the advanced stages. Sugar came in for strong support and rose by Rs200 to 230 per bag as pressure on ready supplies and strong demand from Punjab dealers remained unsatisfied till the end of the week.

Desi sugar and gur were exceptions, which held on to its last levels despite steady new crop arrivals amid active trading.

Rice sector again depicted dull trend amid reports of slow arrivals. As a result fine types of basmati were traded at previous levels and so were the IRRI varieties but the broken was an exception, which came in for stray selling and fell by Rs10 to 25 for IRRI-6 and IRRI-9 Sindh types. Basmati varieties were traded at the last levels.

Unlike previous weeks, pluses came in for active selling from local dealers and were mostly traded at the lower levels as supplies were in far excess of the ready buying orders.

Masoor whole, dal, urad, gram whole and dal came in for active selling by both locals and the upcountry dealers and showed sharp fall ranging from Rs35 to 112.50, biggest fall of Rs100 to 175 per bag being in masoor imported type.

Guar also followed the lead of pulses and rose by Rs5 to 10 per bag despite steady new crop arrivals from the upcountry markets. The rise in prices was attributed to the revival of demand from the local mills.

Cereals showed mixed trend as prices of jowar rose by Rs5, while maize and bajra resisted fresh decline and were held unchanged amid slow trading.

Oilseed sector again showed quiet trend owing to slack demand on reports of a comfortable ready position. Major seeds including the rapeseed and cottonseed lacked normal trading interest and were quoted at the previous levels.

But til came in for fresh selling from the locals because of the falling demand from export houses and were quoted lower by Rs25. Castorseed followed them for third week in a row and were held unchanged followed by the revival of demand at the lower rates.

Oilcakes again showed mixed trend amid dull trading. Cottonseed cakes fell by Rs5, while rapeseed cakes came in for active support but were traded at previous levels.—M.A