THE wholesale commodity markets lacked normal trading interest last week as retailers and brokerage houses did not make fresh commitments at inflated levels and stayed on the sidelines. Physical business, however, was low although some essential counters attracted modest support at the falling prices, dealers said.
Both, wheat and sugar stayed high despite reports of a comfortable ready position on steady arrivals from the upcountry centres.
There was no change in sugar price despite a reported release of the imported stuff by private sector importers.
Prices eased at the end of the week but no official figure relating to the decline at the retailers’ level and increase in daily offtake were reported, brokers said.
Another ship carrying 40,000 tons of sugar arrived last week with the commodity to be released in the open market, they said.
Some private sector importers who were holding the commodity to keep prices high, were worried over the declining trend and urged others not to dump it at lower rates, they added.
The Trading Corporation of Pakistan (TCP), according to sources, will release a substantial quantity through the Utility Stores Corporations before Ramazan.
There was a relative quiet on the rice sector as private sector exporters had honoured their commitments.
The activity was expected to pick up again once the new crop arrives early by next month from Sindh areas where IRRI type was grown.
The notable feature of the week was the flare-up in guar prices which rose to a record level of Rs2,100 to 2,200 per bag followed by the reports of another crop failure in Sindh because of the lack of rain.
Processors claimed the flare-up had created problems for exporters as foreign buyers were not willing to share high input and raw material costs, market sources said.
While wheat and sugar remained pegged around previous levels, others showed divergent trend due to a fairly comfortable ready position.
The decline in essential items was led by moong imported which suffered fall. Masoor imported on the other hand rose by Rs100 amid reports of pressure on supplies. All other varieties were traded at last the level.
Rice stayed dormant in the absence of export demand and falling stocks. The arrival of new crop was being awaited which could help revive normal activity possibly by next month.
After having touched the record level of Rs2,200 per 100kg bag guar prices eased on the selling by local stockists followed by the reports of heavy rains in Tharparkar where it was widely grown.
Reports that the crop was drying up owing to the lack of rain pushed its prices to new highs but processors kept to the sidelines and did not buy at the rise, brokers said. It finally ended with a gain of Rs50.
Cereals on the other hand showed mixed trend. Maize suffered the fall ranging from Rs25 to 50 per bag on selling followed by the reports of steady new crop arrivals, while bajra and jowar were traded at last levels amid slow ready offtake.
Oilseed sector also showed divergent trend. Cottonseed held firmly at the previous close in sympathy with firm oil market, among other major seeds. Both rapeseed and castorseed were marked down by Rs10 to 50 followed by reports of higher arrivals from the interior markets.
The weakness in rapeseed market was attributed to an increase in arrivals from the Sindh market and an easy oilcakes market. Cottonseed held on to their previous levels followed by active support extended by the crushers.
Til was an exception which rose by Rs50 followed by reports of revival of export demand and active short-covering by the processors and local dealers.
Oilcakes showed fractional changes on the lower side on stray selling amid falling demand. Both rapeseed and cottonseed cakes fell by Re1 to Rs5, respectively.—M.A.
THE wholesale commodity markets lacked normal trading interest last week as retailers and brokerage houses did not make fresh commitments at inflated levels and stayed on the sidelines. Physical business, however, was low although some essential counters attracted modest support at the falling prices, dealers said.
