COMMODITIES: Local stockists setting commodity prices
AFTER rising to new peaks during the last couple of weeks, prices of some essential items started weakening on the reports of improvement in ready supplies. However, the decline in wheat and sugar was too small to suggest the trend to continue in the coming weeks, said brokers. The market, they said, was in the grip of leading stockists who were literally setting the price trend. For example, the Trading Corporation of Pakistan (TCP) was regularly supplying sugar to utility stores at Rs21 per kilo and had further allowed a margin of Rs2 to cover the overhead costs. Yet, the price on whole market was still firm at around Rs25, they said. In the last few weeks, three ships loaded with over 0.1 million tons of the commodity arrived at the Karachi port. This, however, did not ease the selling price, they said.
Imports may be easy but it was a two-pronged weapon which worked against the prices in physical trading, some brokers said.
Some administrative measures were needed to strictly control and enforce the prices, or else there appeared no chances of respite.
Further increase in wheat was partially contained due to the harvesting of new crop and partly to steady imports. Though, it still was on the high side, they said.
On other counters, rice remained steady in the backdrop of physical shipments under the previously signed deals under which deadlines were being met.
On an average one loader remained in the port every week to load the commodity within the specified time, while the other was toed to the berth.
Exporters welcomed the reports of import duty waiver by Iran, which will make rice cheaper as compared to others. Accordingly, Iran was one of the largest buyers of Pakistani rice but the duty, however, reduced the quantum of trade.
After rising sharply in previous weeks, pulses stayed steady around last levels and the ready offtake was comparatively slow.
With the exception of wheat, which rose further despite reports of new crop harvesting in lower Sindh, other items suffered modest to sharp fall on renewed selling. This was followed by reports of steady arrivals from the upcountry markets.
Wheat rose by Rs65 to 95 despite steady release of the imported stuff to flour mills. But arrivals of new crop were too small to influence the local prices.
Sugar on the other hand showed a modest fall on reports that another vessel left the port after unloading about 34,000 tons of the commodity.
A sharp decline in local production was said to be the chief reason behind the rising trend. This was despite the fact that the TCP too, was releasing the stock through the Utility Stores. Sugar fell by Rs10 to 20 per 100kg bag.
Desi sugar on the other hand came in for active support and was quoted higher by Rs100 per bag but gur was traded at last levels — thanks to steady arrivals from the Sindh markets.
Pluses on the other hand posted fresh fall under the lead of gram whole and gram dal which were quoted lower by Rs75 to 100 on selling followed by the reports of dumping of imported stuff.
But other varieties, notably moong, masoor, masoor dal, tuver, urad and beetle were traded at last levels as supplies matched the local demand amid falling consumer demand.
Cereals remained in active demand followed by reports of pressure on local supplies owing to slow arrivals from Sindh. As a result, prices of bajra and jowar rose further and so did the maize.
Among major industrial raw materials, til suffered a fresh fall of Rs25, while guar rose by Rs40 to 70 per bag due to slow arrivals from the upcountry markets.
Oilseed sector passed through a quiet week as prices of major seeds, including cottonseed, rapeseed; castorseed did show many changes and were quoted at the last level.
Oilcakes, on the other hand, rose by Rs3 for rapeseed cakes, while cottonseed cakes fell by Rs5 amid active trading.—-M.A.
