PHYSICAL trading on the Karachi wholesale markets remained sluggish as commercial houses and brokers adhered to the sidelines and did not make fresh commitments on the essential counters.
Prices of some of the essential items were, therefore, remained pegged at the previous levels, although some of the brokers reported stray business in some of the commodities, notably wheat and sugar.
Barring wheat and sugar, whose arrivals remained below normal, others were fairly steady, which in turn did not allow major price changes amid falling local demand.
Dealers said, there was no immediate bullish impact on prices of rice both, IRRI and basmati, varieties followed by reports that China will purchase about 0.250 million tonnes of the commodities during the next season.
China is said to be one of the leading consumer of IRRI varieties of rice and the current deal points to a major breakthrough on the export front to a single-country, they added.
A delegation of leading private sector rice exporters is expected to visit China shortly to launch an aggressive export sales’ drive in that country to popularize various rice varieties after holding “birayni festivals” there.
Already, the physical shipments of old crop rice to various countries are well in progress and all the contracts are expected to be honoured before the arrival of new crop. sometime in early September.
On the other hand, prices of some major industrial raw materials are on the decline for the second week in a row followed by selling by the stockists who were holding long positions in anticipation of fresh rise.
Guar seed led them as their prices have started falling followed by reports of fresh rain in the major growing areas of the commodity and market talk of a good crop after two lean years.
But on the other hand, cereal remained under pressure on selling prompted by reports of steady arrivals from the Sindh market and a considerable decline in the local demand. Consumers kept to the sidelines anticipating further fall and then to buy at the lower levels.
With the exception of wheat, which posted fresh rise of Rs10 to Rs15 per bag on reports of a considerable fall in arrivals from the upcountry markets and active mill demand, all other essential items were mostly traded at the previous levels.
Pulses and sugar did not much changes as prices of all the varieties were firmly held at the last levels amid stray business at the unchanged rate. Owing to steady arrivals from the upcountry markets, supply position remained comfortable, which checked any price rise, dealers said.
Prices of the both were, however, on the higher side which in turn has caused a substantial decline in ready offtake by both whole sellers and retailers.
Importers of pulses are holding on to their imported stuff to keep prices within the current levels. Masoor, urad and tuver were quoted on the higher side, while gram whole dal held unchanged as supplies surpassed the local demand despite larger export.
Although physical shipment of rice were maintained at the higher level against the previously signed export contracts, local prices were held unchanged. Most of the shipments by the private sector exporter are being made from their own godowns as they had covered forward positions against each deal soon after the signing.
As far as the stocks of the old crop are concerned, they have almost been exhausted but there is no change in prices of IRRI or basmati as local demand is being met by the rice dealers from their stocks.
IRRI broken was an exception which suffered a fresh fall of Rs10 followed by reports of slack export demand and selling by some stockists.
But exporters predict new crop prices may be much higher as the recent deal signed with China stipulating export of 0.250 million tonnes after September could well prove a bullish market factor, they said.
Some of the industrial raw materials on the other hand remained under pressure under the lead of guar seeds, which suffered a fresh fall of Rs25 to Rs100 bag on renewed selling by some of the leading stockists.
Oilseed sector showed firm trend as prices of rapeseed were quoted higher by Rs5 to Rs50 followed by reports of slow arrivals from the Sindh markets and oil markets.
Cottonseed, til and castor seed on the other hand stayed dormant as supplies matched the local demand. Ready offtake was light but some of the exporters purchased modest quantities of til and castorseeds.
Oilcakes showed an easy trend owing to steady arrivals from the Sindh markets and a considerable decline in mill buying. Prices of both rapeseed and cottonseed cakes fell by Rs3 to Rs15.—M.A.
PHYSICAL trading on the Karachi wholesale markets remained sluggish as commercial houses and brokers adhered to the sidelines and did not make fresh commitments on the essential counters.
