FIRM trend was witnessed on the Karachi wholesale commodity markets last week as prices of essential items generally rose under the lead of pulses because of tight ready position.

Dealers said arrivals from the foreign sources were on the lower side on average, which caused pressure on ready supplies and the consequent price flare-up.

The other aiding factor was said to be strong upcountry demand, which in most of the cases remained unsatisfied and allowed the local stockists and importers to further raise their prices, they added.

However, the situation eased at the fag-end of the week as the supply position improved and the price of pulses generally finished recovered.

But on the other hand steep decline in wheat prices worried those who hold long positions in it awaiting the entry of commercial exporters as buyers.

However, owing to some problems on the export front including uncompetitive international prices, long unsold positions forced them to resort to panic-selling.

Steady arrivals of the new crop from the lower Sindh also triggered selling from the local commercial houses.

Floor brokers said wheat continues to be the victim of production glut as larger exportable surplus could not be marketed owing to lower world rates.

They said reports that talks are well in advance stage with some of the foreign buyers. Export deals are possible for a substantial quantity during the next couple of weeks.

But some others claim the Afghan market could not be fully exploited and once normal overland channels reopen prices could rise from the current lower levels.

Basmati varieties on the other hand maintained their firm trend for the third week in a row, reflecting strong presence of foreign support and reports of fresh export deals.

In sympathy the IRRI varieties also resisted fresh decline but lacked normal support from export houses because of reports of a considerable decline in demand from the importers.

Prices of basmati rose further by Rs25 per bag, while sela type attracted selling and was marked down by the same amount. The IRRI varieties were traded at the last levels amid slow trading.

The IRRI Punjab type was again not quoted, while IRRI-9 Sindh remained unchanged at the last level but IRRI-6 rose by Rs5. IRRI broken remained under pressure and ended sharply lower by Rs75 per bag.

Sugar both white and desi did not show much change and were held at the last levels and so did gur for the want of support. Pluses showed mixed trend.

While urad, gram whole and masoor dal suffered fresh decline of Rs15 to 100 per bag on selling, moong and peas rose by Rs25, with all other types remained pegged at the last close.

Wheat showed easy trend as prices fell by 5 to 30 for both old and new crop on selling prompted by local dealers and stockists.

Cereals came in for active support as prices of Jowar and Bajra rose by Rs15 to 50, the largest rise of Rs50 to 100 being in Maize.

Oilseed sector showed mixed trend as prices of rapeseed came in for active selling followed by reports of steady new crop arrivals from the Sindh markets and oil cakes sector.

All the types suffered fall ranging from Rs50 to 90, while cottonseed were held unchanged.

Til also rose by Rs10 to 15 but on the other hand castorseed were traded at the previous levels for want of support from the local crushers.

Oilcakes showed divergent trend. While cottonseed cakes rose by Rs8 to 10, rapeseed cakes fell by Rs20 in sympathy with rapeseed and as a result, major seeds including rapeseed and cottonseed were traded at the last levels.—M.A.