The Karachi wholesale commodity markets showed firm trend during the preceding week as the prices of some essential items rose modestly, followed by the reports of pressure on the ready supplies.

Wheat, rice and pulses led the market advance partly because of the strong local demand and partly on the reports of stray holding back of stocks by some of the brokerage houses to keep the prices competitive.

While the price of wheat and rice rose followed on the reports of fresh modest export business, the increase in pulses was attributed to the short supply in the wake of reports of slow imports from the foreign sources, dealers said.

The recent upward drive in sugar, however, was halted as the local commercial houses sold the commodity in a haste after some of the mills made direct sales on the wholesale market. Prices, therefore, finished reacted.

The dealers predict that the prices could ease further from the current levels if shipments to Afghanistan were resumed well in time as Pakistan was expected to have an exportable surplus of half a million tons.

Arrivals from the upcountry markets were said to be fairly steady, notably of new crop wheat but the price trend of essential items remained highly erratic and it appeared that it was not linked to the supply and demand factor but to some other reasons.

Dealers said much of the alternate bouts of buying and selling remained confined to wheat but unlike previous weeks the prices remained relatively stable, rising from the recent lows.

The demand from the flour mills was said to be below normal as the millers were not worried over the supply position or an increase in the prices because of the reports of another bumper crop, they added.

Wheat, which has declined sharply during the last couple of weeks because of the larger crop arrivals and the slow mill demand, however, recovered from the early lows amid talks of export deals with some of the countries. It showed a sharp rise of Rs60 per 100kg bag.

But on the other hand sugar came in for active selling from the commercial dealers and fell by Rs25 to 90 per bag on the reports of higher production figures for the current crushing season and steady arrivals. Desi sugar and gur on the other hand did not follow its lead and rose by Rs50 to 100 per 40kg.

The rice sector showed mixed trend amid slow trading as bulk of the business was done at the previous levels. The Kernal type of basmati was an exception, which came in for fresh selling owing to slack demand from the exporters and fell by Rs100 per bag. IRRI-6 broken also fell by Rs5.

But IRRI-6 and IRRI-9 came in for active support and were marked up by Rs25 to 35 per bag as some of the exporters covered their positions.

Pluses again depicted a firm trend as the gram whole, gram dal peas, and beetle posted gains ranging from Rs15 to 50 per bag, the largest gain of Rs100 to 150 per bag being in masoor and dal followed by the reports of slow imports and the pressure on ready supplies. Guar was traded at the last rates throughout the week.

The cereals showed a divergent trend as a result the prices were marked down on local selling and slack demand. Jowar was an exception, which came in for the modest support and rose by Rs15 per bag.

Maize consolidated previous gains on the renewed support from the exporters and managed to finish at the previous levels amid active trading.

Oilseed sector depicted firm trend as the prices of rapeseed, castorseed were firmly held at the previous levels amid slow trading. Cottonseed was again not quoted followed by the reports of short supply.

Til came in for active support from the export houses and was quoted higher by Rs20 to 30 per maund.

Oilcakes showed firm trend as the prices of cottonseed and rapeseed cakes were quoted higher by Rs5 to 10 amid active trading followed by the reports of higher oil market.—M.A