A relative calm was witnessed on the Karachi wholesale commodity markets during the previous week as both commercial houses and leading brokers did not resume their normal trading operations.
However, at the fag-end of the week,wheat prices showed a sharp increase as arrivals from the upcountry markets dried up and mills tried to replenish their stocks around Rs1,100 per bag. The net rise over the week was Rs50 to 60 per bag.
Sugar followed it,up by Rs5 to 100 followed by reports that the Trading Corporation of Pakistan (TCP) has sought official permission to export 0.2 million tonnes of the commodity recently purchased from the mills. Most of commercial houses remained busy with the year-end closing business to take account of their inventories before resume new financial year buying and selling operations.
Floor brokers said the market generally witness dull trading sessions during the fag-end of the financial year as both commercial houses and brokers prefer to close the year with lower stock in hand rather than big carryover inventories.
The new budget and its fiscal measures including taxation proposals by now and their impact on the commodity trade have been fully assessed and new year trading will reflect how dealers feel about the new steps, they said.
They said leading commodity dealers mostly keep to the sidelines at the closing stage of the financial year for obvious reasons that is why price movement and the ready offtake generally remained light.
The interesting feature was that there was no post-budget price hike in any of the essential items as supplies matched the local demand and most of them were traded at the previous levels barring wheat.
On the export front, physical shipment of rice was maintained on the higher side as arrival of rice loaders in quick succession reflects smooth sailing as shipment deadlines are judiciously met by the private sector exporters.
Another rice loader, the Patriakos-11 to load 17,000 tons of the commodity is in the port after the departure of another,which loading rice for the last couple of days for a Gulf destination.
Rice sector showed firm trend as IRRI types remained in active demand from the private sector exporters and stayed firm,all other varieties including fines varieties of basmati were traded at the last levels.
Pluses sector showed firm trend and while prices of gram whole posted fresh gain of Rs10 per bag, all other varieties were traded at the last levels barring tuver, which came in for active selling from the commercial importers and fell by Rs250 per bag.
Prices of industrial raw materials further on the other hand rose on renewed buying.Prices of guar showed the largest rise of Rs85 to 90 per bag followed by resumption of buying by the processors and a fall in arrivals from the upcountry markets.
Cereals remained under pressure on selling at the higher levels and suffered fall of Rs25 for bajra and maize,while jowar managed to finish with a modest rise of Rs5 amid active trading.
Oilseed sector again lacked normal trading interest from the crushers owing to the city situation. Prices of all varieties of rapeseed and cottonseed were firmly held at the previous levels amid light trading.
There was no immediate bullish impact on the prices of rapeseed and cottonseed despite levy of 15 per cent sales tax on the latter but prices could rise during the next couple of weeks.
On the export front,castorseed were actively traded amid reports of fresh import enquiries and were quoted higher by Rs50, while til came in for active selling followed by reports of a considerable fall in export demand and steady arrivals from the upcountry markets. It suffered a sharp fall of Rs150 per 40 kg.
Oilcakes again showed divergent trend and while rapeseed cakes posted a gain of Rs10, cottonseed cakes fell by one rupee amid slow trading. - MA
