The Karachi wholesale commodity markets showed quietly easy trend during the preceding week. The reports of oversupply continued to inspire fresh selling on some of the essential counters.

Unlike previous couple of weeks, some types of pulses resisted fresh decline followed by fresh covering purchases made by the Punjab traders, while others suffered fresh fall.

Sugar also came in for renewed selling and ended further lower by Rs40 to 45 per bag on selling prompted by reports that the mills have resumed crushing operations and the new crop will be available during the next week. Gur rose by Rs100 on larger exports, while desi sugar fell by the same amount on selling.

According to market sources some commercial importers have made substantial imports of pulses from various countries including Iran and Ethiopia, and have flooded the market with the imported stuff.

However, as demand did not match the ready supplies, prices started to drift lower creating financial problems for the commercial importers. The interesting feature was that the sharp price decline in pulses on the wholesale markets was not passed on to the retailers, who continued to pay more for the commodity.

Gram whole, gram dal, beetle and some other varieties remained under pressure but moong and mosoor types remained unchanged from the previous level in the absence of strong ready demand.

Much of the activity remained centred on the pulses counter as some leading importers were pressing sales at the current levels to clear the backlog of the unsold imported stuff, dealers said.

Although, the physical shipments of wheat under the recently signed export contracts by the Trading Corporation of Pakistan are steadily being made, prices eased modestly followed by the reports of selling by commercial houses owing to steady arrivals of the commodity from upcountry markets.

Rice shipments were also maintained on the higher side as private sector exporters tried to maintain their shipment deadlines. Arrivals of the new crop from Sindh markets were said to be normal.

Wheat prices eased by Rs5 and did not show any further fall on the reports of fresh export deal for another 50,000 tonnes at higher price of $133 per tonne.

A private sector exporter also sold 50,000 tonnes of the commodity to Iraq at 218 euro per tonne and talks for fresh deals are claimed to be in advance stage.

The higher rate reflects a strong demand for the local variety of wheat on world markets. During the last auction, the TCP did get 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 official godowns, which in turn did not allow any major price change.

Both, 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 in the market by April next.

Rice sector was an exception, which ruled firm owing to steady export of the new crop. The oversupply, because of steady new crop arrivals was said to be well-absorbed even at the rise as exporters covered positions against foreign sales. Irri varieties posted gains ranging from Rs5 to 15.

Guar prices came in for fresh selling as new crop arrivals picked up and suffered fresh fall of Rs50 per bag, but the ready offtake was said to be slow as mills expect further decline.

Pulses came in for renewed selling. Prices of gram whole, gram dal, and urad were marked down by Rs25 to 50 per bag, the largest fall ranging from Rs175 to 350 being in moong.

Cereals showed firm trend as maize, jowar and barley were quoted unchanged at previous levels amid slow ready offtake. Bajra rose by Rs50 to 75.

Oilseed sector depicted steady trend as the price of rapeseed rose by Rs10 to 15, while cottonseed were again not quoted. Til and castorseed were also traded at previous levels.

Oilcakes came in for fresh support at lower levels as prices of both cottonseed rose by Rs5 to 10, rapeseed cakes were held unchanged.—M.A