The Karachi wholesale commodity market showed mixed trend during the previous week as the commercial houses did not indulge in selling followed by the predictions of pressure on supplies. Ready activity was slow owing to rains.

The second spell of heavy monsoon rains in major cropping areas has brightened the prospects of good crops, notably cotton, pulses and some other essential items but an anticipated pressure on supplies from the interior markets owing to rainfall and allied transportation problems caused price increase on some counters.

However, the increase was modest and did not reflect panic-buying from any quarter amid perceptions that the current heavy monsoon spell could work on both sides of the price line, dealers said.

Despite stray arrivals earlier in the week, some commodities were virtually dried up because of the mid-week rains in Sindh crop belt and caused price flare-up on some counters.

But it was satisfying to note that the pulses did not show much change despite reports of pressure on ready supplies amid reports that some importers have slowed down the daily release of stocks in the open market.

Prices of some varieties fell instead of an expected increase in the absence of demand from the Lahore dealers, as well as local wholesalers.

Ready offtake on this counter was, therefore, relatively slow causing price decline in some types, notably gram whole and gram dal.

Wheat on the other hand resisted fresh decline and prices were firmly held at previous levels amid slow trading. Mill demand was also said to be on the lower side.

Rice sector ruled firm, the new crop managed to secure export orders for 0.4m tonnes of the commodities including 15,000 tons from Iran.

Prices of all varieties, both fine basmati and Irri were held unchanged despite the reports of falling stocks of the old crop after physical shipments of the contracted consignments.

There was a relative quiet on the sugar front amid reports of an ambitious plan to sell all the exportable surplus to some countries through the Trading Corporation of Pakistan, which has already sold the allotted quantity of 0.1m tonnes well in time. Shipments against export orders were being made. But stray selling on the weekend pushed prices modestly lower by Rs5 to 15 despite tight ready position owing to a fall in arrivals from the mills.

Pulses showed an easy trend for third week in a row in the absence of strong demand and suffered fresh fall ranging from Rs30 to 100 for gram dal and masoor dal imported type, but the largest fall of over Rs200 per bag was noted in urad. All other types were traded at last levels.

Guar attracted modest support from the processors and was marked up by Rs25 after falling sharply over the last couple of weeks followed by heavy rains, and on the hopes of good new crop in Barani areas.

Cereals showed quiet trend followed by the reports of slack ready demand. Prices of jowar, maize and barley were firmly held at previous levels. Bajra came in for modest selling and fell by Rs25.

Oilseed sector showed quiet trend amid slow trading as prices of rapeseed resisted fresh fall on the revival of mill demand and firm oil market.

Castorseeds were actively traded around previous levels followed by the reports of revival of demand from exporters and local processors and active castor oil export to some Near-East countries.

Til also followed its lead after the revival of demand from the exporters and was quoted unchanged on the reports of pressure on ready supplies owing to fall in arrivals from the upcountry markets.

Oilcakes came in for active selling at higher levels followed by the reports of steady arrivals from the upcountry market and as a result prices of both rapeseed and cottonseed cakes suffered fresh fall ranging from Rs25 to 53.—MA