THE Karachi wholesale commodity markets closed on a steady note last week as prices of some essential items showed minor upward changes under the lead of wheat and pulses.
There was no flare-up on any essential counter as the advent of Ramazan witnessed normal trading on all counters. Mostly, the prices hanged to their former levels.
Brokers said that though few essential items were on the upper scale but in the preceding week commercial houses refrained from indulging in speculative trading in any food item.
Supplies, including arrivals from the upcountry and local sources were high than the weekly average before Ramazan which checked undue flare-ups, they said.
At retailers’ end, the general consumer was forced to pay more in the absence of any price controlling mechanism and the retailers kept hiking the rates according to their whims, market sources said.
After falling modestly in the last couple of weeks, wheat in the preceding week fell as supplies, both from official sources and local stockists improved considerably, they said adding the current modest increase appeared speculative and was not related to supply and demand factors, said others.
Rice sector was tossed between supply and demand on modest arrivals of the new crop but prices were generally stable as arrivals were too small to influence, they added.
On the export front, physical shipment of rice against forward deals signed in the old crop were maintained as a loader was in the process of filling the consignment, private sector exporters said.
Sugar did not show any change as prices remained stable around previous levels despite the release of fresh stocks by the TCP and private sector importers. The supply gap could be bridged as stockholders played safe by keeping an eye on the wholesale prices.
According to market sources some mills had imported a substantial quantity of raw sugar and some began refining it before the start of the new crushing season i.e., by the end of current or early next month.
In late last week trading in wheat came for renewed demand from the mills and was marked up by Rs30 to 35 per bag. Pressure on supplies continued in the absence of holding back of stocks by commercial houses.
Dealers said that it was the largest weekly increase in wheat by linking it to flare-up due to the holy month. According to official sources there was sufficient stocks of the imported stuff but speculative forces managed to push the prices up after creating artificial shortage.
Some types of pulses followed wheat under the lead of urad and moong which rose by Rs25 to 50 per bag as leading importers of both types held on to their stocks to keep the prices high, they added.
Other varieties including gram dal and gram whole and masoor were traded at previous levels as both local and imported stuff was readily available in the wholesale outlets, they added.
Rice did not show much change as prices of major varieties including IRRI and basmati stayed around previous levels despite reports of steady arrivals from Sindh.
Rice was expected to ease once the new crop arrivals get normal and was joined by the Punjab dealers. In Punjab harvesting of IRRI started late. IRRI broken fell by Rs10.
By early next year the average new crop arrivals could push prices lower despite the presence of private sector exporters. According to market sources leading exporters have already signed forward deals with their foreign counterparts including Iran and China and could keep the market in a good shape.
Pakistan was expected to make foreign sale of rice worth in billions due to a bumper crop and predictions of enough exportable surplus. Local buying and those by the exporters against their forward deals could work on both sides of the market, dealers said.
There was no change in sugar despite resumption of crushing by some mills and import of substantial quantity of the raw commodity.
Cereals stayed at previous levels barring bajra which suffered a fresh decline of Rs100 per bag, while maize, jowar and barley were unchanged at previous levels.
Oilseed sector showed firm trend as prices of major seeds including cottonseed and rapeseed were unchanged, while castorseed rose by Rs25. Til also remained unchanged.
Oilcakes were actively traded amid reports of short supply. Both rapeseed and cotton cakes were marked higher by Rs6 to 15 in sympathy to inflated oil markets.—M.A.
THE Karachi wholesale commodity markets closed on a steady note last week as prices of some essential items showed minor upward changes under the lead of wheat and pulses.
