PRICES of essential commodities on the Karachi wholesale commodity market showed fall during last week as ready position remained fairly comfortable — thanks to steady arrivals from upcountry markets.
The market decline was led by the pulse sector, which fell in unison on active selling by both, the commercial houses and the importers, partly because of a considerable fall in demand from the Punjab traders.
Dealers attributed the decline to larger imports during the last couple of weeks, and steady arrivals from the upcountry markets. Sugar also remained under pressure on the selling by local stockists and commercial dealers, amid reports of steady new crop arrivals. Gur and desi sugar also fell as growers have opted for local processing because of the delay in crushing season by the mills.
Unlike the pre-Eid holiday sessions, there was no pressure on the cargo haulers, and consignments from the upcountry trading centres are reaching well in time, keeping a judicious balance between the supply and the demand, dealers said.
Prices did rise and fall on selected counters amid alternate bouts of buying and selling, but in an orderly way as there was no panic buying on any of the counters including the essential ones, they added.
Prices of some industrial raw materials showed downward trend followed by the reports of steady new crop arrivals but dealers said some of them are still on higher side.
Wheat stayed firm and did not show any further rise despite reports of fresh export deal for another 50,000 tonnes at $133 per tonne.
The high rate reflects a strong demand for local variety of wheat in world markets. During the last auction, the TCP got the best price of $113 per tonne, against which the current one appears to be quite attractive, dealers said.
Dealers said owing to a bumper wheat crop for two consecutive years, there is a large exportable surplus in government godowns, which in turn did not allow any major price change.
Both the private sector exporters and the Trading Corporation of Pakistan (TCP) are making efforts to dispose of the unsold stocks of wheat well before the new crop arrives on the market by April next.
Rice sector was an exception, which ruled firm owing to steady export of the new crop. Oversupply, because of steady new crop arrivals was said to be well-absorbed even at the rise as exporters covered their positions against foreign sales.
As a result, rice varieties, notably fine types of basmati and Irri, including sela came in for modest support and were quoted higher by Rs20 to 35 per bag, while others were traded at the previous levels.
Guar prices, came in for fresh selling as new crop arrivals picked up and suffered fresh sharp fall of Rs130 per bag but the ready offtake was said to be slow as mills expected further decline.
Pulses came in for renewed selling. Prices of gram whole, gram dal, and moong were marked down by Rs25 to 50 per bag, largest fall ranging from Rs100 to 175 in gram dal and gram whole.
Cereals showed firm trend as maize, bajra, jowar and barley were quoted unchanged at previous levels amid slow ready offtake. Arrivals from the upcountry markets were fairly steady.
The oilseed sector stayed firm as prices of rapeseed consolidated previous gains owing to firm oil and cakes market. New crop remained off the board.
But til came in for modest support at lower levels and was quoted higher by Rs25 per 40kg as exporters covered their forward positions against foreign sales.
Oilcakes came in for fresh support at lower levels as prices of both cottonseed and rapeseed rose by Rs10 amid reports of pressure on ready supplies.—M.A.
