THE wholesale Karachi commodity markets passed through a relatively quiet week — barring few changes — the price list of essential items mostly remained pegged at previous levels.

Sugar and pulses, however, were the exceptions which came in for selling at higher levels and ended lower under the lead of tuver, falling by Rs250 per bag.

After falling sharply, new wheat crop on the other hand came in for active support followed by fresh export contracts and thus rose modestly.

Dealers said that apart from a considerable decline in the demand from Punjab traders, there was comfortable ready position — thanks to steady arrivals from the upcountry markets.

Physical activity in essential items remained on the lower side as the brokers and the commercial houses were not in hurry to build large stock positions, they added.

However, an increase in wheat prices after three-weeks decline surprised the brokers. The fall in prices was attributed to the selling of old stuff followed by the reports of steady arrivals of new crop from Sindh markets.

Dealers said the resumption of procurement operations by the Food Department in upper Sindh wheat belt, where harvesting is said to be in full swing, may be one of the reasons behind the price flare-up in local market.

The arrivals of new wheat crop into local market has shown a decline during the last couple of sessions as growers prefer to sell to local official outlets, rather than sending it to the main market, as they need prompt cash payments.

Moreover, reports of fresh export sales of old crop to some Muslim countries, including Afghanistan and a slight pressure on ready supplies also caused a modest rise in the prices, brokers said.

But other essential items were mostly traded at previous levels, including rice as supplies matched the ready demand. Although, exports of rice are lower as compared to last year, prices are ruling steady on active local demand.

The sowing of new rice crop may be delayed a bit because of the shortage of irrigation water and that may cause an increase in the prices during next couple of weeks, market sources said.

Unlike the previous week, price changes on this counter were modest and in no way reflected pressure both on the prices and the ready positions.

Basmati sela type on the other hand maintained its firm trend for the fourth week in a row, reflecting strong presence of foreign support and reports of fresh export deals. Broken IRRI and basmati rose by Rs5 to 50 per bag, while sela variety was marked up by Rs50. The IRRI types were held unchanged.

Sugar white came in for came in for active selling and was marked down by Rs50 to 75, while gur and desi sugar suffered fall of Rs50 each. Pluses stayed mixed. Moong and beetle posted fresh gains ranging from Rs50 to 100 per bag. Peas, tuver and masoor dal suffered fall ranging from Rs100 to 250 per bag on renewed selling.

Wheat resisted fresh decline as the prices recovered from the previous lows to finish higher by Rs20 per bag for new crop. Old crop was not quoted.

Guar also came in for stray selling followed by reports of steady arrivals from the upcountry markets and were marked down by Rs5 per bag.

Cereals showed dull trading conditions and as a result prices of jowar and bajra were held unchanged at the last levels, while barley was marked lower by Rs10 to 25 on slack demand from the exporters.

Oilseed sector showed quietly firm trend as prices of both cottonseed and rapeseed held unchanged amid slow trading. At the fag-end of the week, prices of cottonseed were not quoted perhaps because of short supply.

Castorseed and til followed them in the absence of strong support from the exporters and remained pegged at last levels amid slow trading.

Oilcakes showed mixed trend as the price of rapeseed cakes were held unchanged, while cottonseed cakes suffered fall ranging from Rs2 to 5 amid slow trading.—M.A