The Karachi wholesale commodity markets showed quietly mixed trend during the last week, as prices of some of the essential items were firmly held at previous levels, while others fell under the lead of rice and pulses.

Arrivals from upcountry trading centres were above the weekly average and prompted selling on some of the counters, notably the pulses and sugar, although the fall was modest.

After the last couple of weeks’ higher trend, major export items including wheat and rice came in for active selling, followed by larger arrivals of new crop rice.

The new rice crop prices have been ruling fairly steady for the last two weeks as exporters were in the market and lifted substantial quantities to honour their export commitments, dealers said.

But a sizeable increase in the arrivals of new crop from Sindh markets, and a modest decline in local as well as export demand had a negative impact on the ready prices, they added.

Although, foreign shipments of wheat are steadily maintained, the larger unsold stocks — a modest decline in mill-buying and hasty selling — by some local commercial dealers had a negative impact on the ruling prices.

Although, the new wheat crop is still far away, local dealers are not inclined to hold long positions fearing further decline in prices if fresh export deals were not signed.

Both, the Trading Corporation of Pakistan and private sector exporters are said to be half-way to achieve the export target of a million tonnes during the current season.

However, prices of some industrial raw materials remained on the higher side under the lead of guar, which remained in short supply followed by the reports of a short crop.

Dealers said the new crop of guar is expected to arrive in market during the next couple of weeks and may push its prices lower from the current high levels, allowing the processors to resume export sales.

Wheat is leading among them, which has been in active demand for the last couple of weeks and in the process prices remained stable at the previous levels amid slow ready offtake.

Although export shipments are still being made under the previous contracts, prices eased modestly on selling by local commercial houses owing to the lack of fresh enquiries from the private sector exporters. Sugar on the other hand resisted fresh fall on steady local demand, followed by the reports of delay in the new crushing season, which is expected to start later this month. Desi sugar and gur were an exception which came in for selling followed by the reports of new crop arrivals and fell by Rs10 to 100 per 40kg.

The new rice crop from Sindh rice belt is steadily arriving but as demand is on the higher side, prices showed mixed trend. While Irri-9, and basmati kernal were quoted sharply higher by Rs50 to 100 per bag of 100kg, Irri-6, basmati and its sela varieties were marked down by Rs5 to 50.

Fine varieties, including sela on the other hand was traded modestly higher by Rs50 per bag, while Irri types by Rs50 to 100. Export shipments of new crop under the newly signed contracts are being steadily maintained to meet deadlines.

Pulses showed mixed trend amid alternate bouts of buying and selling. While moong and Tuver rose by Rs50 to 100 per bag, masoor, urad, gram and beetle suffered fall ranging from Rs10 to 75, the largest fall of Rs125 being in urad. Others were traded at the last levels.

Guar came in for modest support in the backdrop of slow arrivals from the upcountry trading centres and rose by Rs25 per bag.

Cereals showed easy trend as maize suffered sharp fall of Rs110 per bag on selling followed by the reports of new crop arrivals, while wheat fell by Rs10, with Jowar and Bajra remaining unchanged at the last levels.

Oilseed sector stayed firm as the prices of rapeseed were again quoted unchanged, followed by reports of firm cakes market. New crop cottonseed were again not quoted owing to the absence of arrivals from the Sindh ginneries. Catorseed followed them and remained pegged at the last levels.

Til attracted fresh support at lower levels followed by the reports of revival of export demand, and were marked higher by Rs50 per 40kg amid active ready business. Oilcakes stayed mixed. While cottonseed cakes rose further by Rs5, rapeseed cakes remained pegged at previous levels as the ready position was fairly comfortable.—M.A