THE Karachi wholesale commodity markets lacked normal trading interest last week as commercial houses kept to sidelines and refrained from making fresh commitments on any counter. Arrivals of new crop wheat, gram dal and gram whole were on higher side of the weekly average which depressed the prices of some essential items, brokers said.
Although reports coming from the wheat belt indicated that there were some problems in official procurement drive in some areas, agents of flour mills and a good number of private parties were out to grab the floating stock at current levels, they said.
Growers were not in an obliging mood and remained unwilling sellers at official prices anticipating further increase once the official procurement drive gathered the momentum, they added.
However, in the process prices of new crop wheat and gram dal suffered modest fall as selling remained confined to stray stocks. On the other hand, some local commercial and brokerage houses were active buyers at the falling prices.
Market sources said leading among them were trying to corner the new wheat crop and some types of pulses by way of hoarding in an apparent effort to keep the price line in a tight grip at the end of the season.
In the last couple of years, big parties had entered the commodity trade and owing to unlimited funds at their disposal, they try to grab the ready stocks of most of the essential items at harvesting stage, they said.
That was perhaps why the prices remained on higher side throughout the year irrespective of the supply and demand factors. They release the stock at will to keep the prices on higher scales, they added.
For instance, about half million tons of sugar was imported in about two months and the TCP had also released the stock of about 0.250 million tons. Despite the oversupply, whole prices were unchanged around Rs25 per kg for last couple of weeks.
Official production figures by local mills were yet to be announced but indications were there that most of the mills were holding back their stocks to keep the prices around current levels.
Despite panic and duty-free import of sugar, there were no signs of easing of the whole prices as leading stockists were holding back large stocks in the absence of any official warning, dealers said.
The notable feature was that some essential items showed fractional decline as supply position improved and prompted selling by local stockists.
Gram dal and wheat were leading among them as prices eased from the current high levels followed by reports of steady new crop arrivals from Sindh markets. Prices were expected to show further fall once fresh arrivals gathered the momentum.
While wheat fell by Rs10 to 15 per bag, gram dal suffered a fall of Rs25 followed by sugar, off Rs10. Irri broken also remained under pressure in the absence of fresh export demand and fell by Rs5. All other rice varieties were traded at previous levels amid reports of steady exports.
After holding on to previous levels for last couple of weeks, sugar also showed a modest fall of Rs10 per bag but the fall was too small to give benefit to general consumer.
Both gur and desi sugar on the other hand came in for active support and rose by Rs50 to 100 amid active trading followed by reports of slow arrivals from the Sindh markets and strong demand from the Afghan buyers.
Urad imported and Irri-9 also remained in active demand and closed with gains ranging from Rs10 to 20, with all other items holding on to last levels.
While cereals were trading at last levels under the lead of bajra, maize and jowar, some industrial raw materials came in for renewed support and rose by Rs35 to 50 per bag for guar seeds.
Oilseed sector showed divergent trend as new crop rapeseed suffered fall ranging from Rs15 to 20 for rapeseed, Nawabshah and Mirpurkhas varieties, while others were held unchanged.
Cottonseed again lacked normal trading interest as prices were unchanged from the previous levels amid slow trading. Castorseed, til followed them on reports of slackened export demand.—M.A
