Despite higher production figure fresh increase in sugar prices featured the trading on the Karachi wholesale commodity markets during the last week where activity in most of the essential items remained fairly active.
Although the final sugar production figure will possibly reach the market by the first week of next month, the current total at 3.2 million tons is well above the comparable total for the last season. Analysts predict an exportable surplus of about 0.3 million tons after meeting the local demand of 2.9 million tons.
Dealers said together with carried forward unsold stock of the previous crop, the net surplus of sugar could touch the high mark of half a million tons or slightly above this figure depending on the final current crop figure.
Arrivals of new crop wheat and some types of pulses, notably gram were on the higher side as compared to a week earlier, which in turn further depressed wheat prices on the local market but gram whole and its sister varieties, including beetle, rose on active demand.
Despite steady arrivals, the fall in wheat prices was limited followed by reports that some private sector exporters have made forward deals with the foreign buyers for a big quantity of 0.3 million tons and talks for another 0.1 million tons is said to be in advance stage.
But rice varieties on the other hand turned mixed where fine varieties of basmati attracted good export demand from the Gulf states after the end of Iraq war and generally rose from the previous levels. Irri-9 remained under pressure and fell further.
However, as the Iraq war is almost over, world demand is expected to pick up for both sugar and wheat, which in turn could work both ways of the price line depending the size of foreign orders.
Sugar prices were quoted further higher by Rs20 per bag, while wheat suffered a fresh modest decline of Rs5. Desi sugar also rose by Rs50.
Among the pulses, peas, gram whole, gram dal and betel posted gains to the extent of Rs15 to Rs85, while urad, beetle inferior variety and masoor dal finished lower by Rs25 to Rs100, the largest decline of Rs200 being in masoor dal imported type.
In the rice sector basmati kernal, basmati and Irri-6 broken rose by Rs10 to Rs50 per bag, while Irri-9 fell by Rs25 on selling prompted by slack export demand. Sela variety was again traded at the last levels.
Brokers said revival of export demand was said to be chief reason behind the increase in prices of fine types of basmati. Among the creals, guar posted a fresh gain of Rs15 followed by reports of holding back of stock by some of the leading upcountry and upper Sindh traders, while bajra suffered fall ranging from Rs10 to Rs15 on active selling by local dealers followed by reports of steady arrivals from the interior.
Both maize and jowar did not show any change and were quoted at the previous levels as supplies matched the local demand thanks to steady arrivals from the upcountry markets.
Major industrial raw materials, notably on the oilseed sector showed firm and were mostly quoted higher from the previous levels amid modest activity.
All types of rapeseed were quoted higher by Rs5 to Rs15 followed by reports of firm oil and cakes markets and active short-covering made by the crushers.
Castorseed among the other oilseeds also came in for active support from the exporters and local crushers and finished with gains ranging from Rs5 to Rs20.
Til on the other hand showed divergent trend and while its fine variety rose by Rs50 on revival of export demand, its inferior type fell by the same amount on local selling.
Oilcakes showed mixed trend as prices of rapeseed cakes rose further in sympathy with rise in rapeseed and firm oil market, cottonseed cakes fell by Rs3 amid active trading.—MA
