PRICES of some essential items on the Karachi wholesale commodity markets rose last week due to the pressure on ready supplies. This was followed by the reports of holding back of stocks by the leading stockists, notably from the interior trading centres.

Physical business, however, remained light as retailers were not inclined to make fresh commitments at higher prices and kept to the sidelines waiting for a fall once the supply improved.

Pulses again led the price flare-up despite reports of arrival of a fresh consignment of 11,000 tons from a foreign destination. As the imported stuff could not find an outlet in the open market, prices reacted under the lead of urad and peas.

Commercial dealers said that it was interesting to find wheat at higher levels, due to an active mill-demand and falling arrivals from the upcountry markets.

The arrival of three ships carrying about 60,000 tons of sugar over the week did not affect the prices as stockists and mills held on to their positions to keep these stable.

However, some brokers predicted sugar to fall after remaining steady for two months as soon as the imported commodity found a way into the market.

There were now sufficient stocks of both wheat and sugar and there was no reason to believe that the prices will not decline from the current levels, they said. The administrative move and the release of fresh stocks will certainly ease the prevailing situation.

Rice remained firm around previous levels, although ready demand was adequately met from the old crop. There was a relative quiet on the export front against previous deals as private sector exporters were expecting the new crop arrivals.

According to market sources new crop from some lower Sindh areas was expected to arrive by month-end, while larger arrivals by October.

Some industrial raw materials showed sharp rise owing to the pressure on supplies. Guar seeds were leading among them followed by the reports of crop failure in Sindh for the second consecutive season, they said.

Most essential commodities showed mixed trend but the physical business remained modest as commercial dealers and brokerage houses were not inclined to cover the positions at higher levels.

Sugar stayed unchanged despite the arrival of three ships. However, there was not any impact on the ruling prices which stayed secured.

Perception that the imported stuff would take some more weeks to reach the market did not create panic among the stockists who firmly held on to their unsold position, brokers said.

Pulses, on the other hand, showed mixed trend some fell under the lead of masoor by Rs100 to 200 per bag, while urad and peas rose by Rs50 100 per 100kg bag.

After rising earlier, wheat stabilized around previous levels followed by the reports that another 0.150 million tons of the commodity will be imported during the next couple of weeks. The arrivals from Sindh and a considerable decline in mill-demand were other positive developments.

Rice sector lacked normal trading interest as the local stockists have almost exhausted their stocks from the old crop. There was no activity on the export front as private sector exporter did not make fresh shipments against the orders during the last week. IRRI-6 broken was an exception which fell by Rs5.

Some industrial raw materials remained in active demand under the lead of guar which rose to a record high level followed by reports of another crop failure in Sindh due to the absence of rain after the sowing. New crop in Punjab and Balochistan was said to be normal.

Cereals on the other hand came in for fresh selling and tended lower. Maize and bajra were leading among them, off Rs25 and Rs50.

Oilseed sector was dormant as supplies generally matched the ready demand. Rapeseed, Mirpurkhas type was an exception which was marked down by Rs15 in sympathy with the weak cake market.

Til on the other hand managed to finish higher by Rs100 followed by fresh buying by the exporters but on the other hand castorseed held on to the last levels because of a comfortable ready position.

Oilcakes on the other hand showed fresh decline ranging from Re1 to Rs5, both for rapeseed and cottonseed cakes followed by the reports of a fall in the crushers’ demand.—M.A.