AFTER a sustained run-up, essential items on the Karachi wholesale commodity markets softened last week on improved supplies and selling in part by the stockists on fears of further decline.
Apart from steady arrivals, the drop was also attributed to reports of considerable unloading by importers and local dealers, brokers said.
Pulses led the fall under the lead of moong and masoor followed by others as buyers withdrew to sidelines anticipating further ease in prices both from the retailers and brokerage houses, dealers said.
Wheat followed it after remaining static for two months despite larger imports from various countries to pull the local prices down, they said adding the release of stuff by some commercial importer and the falling mill-demand was other destabilizing factor.
But there was no change in sugar which maintained the previous level despite arrival of a number of consignments from various countries.
Dealers said that the bulk of imported stuff was expected to find way into retail channel by the first week of Ramazan through the Utility Stores and private outlets and authorities hope a considerable decline in prices.
But some others said that until stocks of about a million tons held by the millowners found their way into the open market it appeared a bit difficult to pull prices further down.
There was uncertainty about the new crushing season in Sindh as crushers had shown their inability to maintain the official deadline of October 15 and intended to extend it to November, market sources said.
On rice front, physical shipment under the previously signed deals was judiciously maintained as loaders arrive here almost each week to load the commodity.
Meanwhile, local sources have predicted softening of the price once the new crop arrived under the lead of IRRI variety from Sindh which was close to harvesting and the new crop was said to be on the higher side as compared to last year.
Although some pulses managed to wipe out their early losses but others remained under pressure on renewed selling, both from the importers and the commercial dealers. Falling demand was another adverse factor as retailers stayed on the sidelines awaiting further decline.
The largest fall of Rs200 per bag was noted in masoor imported followed by tuver which fell by Rs40. Moong, on the other hand rose from the initial lows and was quoted higher by Rs100 to 200 per bag, while other types remained unchanged.
Among other essentials, wheat too suffered a fresh fall of Rs30 for the second week in row as supply improved further. Both local stockists and official sources released in part their stocks to check any possible price flare-up during Ramazan.
Sugar did not show any change despite arrival of four fresh consignment of the commodity from various destinations. Prices remained stable around previous levels some softening was witnessed at retail level.
Although, new crop from the Sindh rice belt was yet to arrive, physical shipment of the commodity was being steadily made to a number of countries against the previously signed contracts. Barring Irri broken which was marked down by Rs25, all others were traded at previous levels.
On cereal sector, bajra which had hit new peak level of Rs2,400 fell further – the biggest single-week fall of Rs400 to 500 per bag last week.
Other cereals including barley was also quoted lower by Rs30 to 40 per bag on selling prompted by reports of fresh arrivals from Balochistan and the NWFP. Miaze on the other hand rose by Rs100 on active ready demand.
Guar came in for renewed selling amid reports of a good crop and fell by Rs75 amid active trading, although processors remained on the sidelines anticipating further ease in prices.
Oilseed sector showed firm trend as prices of major seeds including cottonseed and rapeseed were unchanged but til and castorseed were exceptions. The former fell by Rs50 while the latter rose by Rs25.
Oilcakes ruled divergent while rapeseed cakes posted a fractional rise of one rupee, cottonseed fell by Rs5 to 10 on reports of weak oil market and the consequent selling.—M.A.
AFTER a sustained run-up, essential items on the Karachi wholesale commodity markets softened last week on improved supplies and selling in part by the stockists on fears of further decline.
