QUIET conditions prevailed on the Karachi wholesale commodity markets last week as commercial houses and brokers held on to their positions, refraining from indulging into speculative trading.
Barring wheat which rose modestly, prices of other essential items were static as the ready position remained fairly comfortable despite disruption in arrivals from the upcountry markets, dealers said.
Majority of cargo haulers remained busy in transporting relief goods to the quake-affected areas at higher freights thus leaving back the bulk of supplies in the upcountry trading centres, they said.
However, it was satisfying to note that the leading brokerage houses and commercial traders did not raise the asking prices to ensure adequate supplies to local consumers at reasonable rates, they said.
In contravention some retailers raised the prices of essential items on their own forcing the consumer to pay more.
Although, the government continued to unload its long positions through the TCP for easing the sugar but the wholesalers of this sector were not inclined to lower their selling prices and the commodity remained expensive despite adequate availability.
After failing to fall regardless of the government efforts, sugar remained stuck to higher levels. Consumers pinned hopes on the new crop which - if supplies were not regulated by the millers - could ease the situation at least at the consumer level, market sources said.
Rice export remained high after arrival of the new crop IRRI from the Sindh rice belt. A loader was in the port to lift a consignment of 13,000 tons.
According to market sources, another bumper rice crop of about five million tons was around the corner which could help in earning about one billion dollars through export during the current season.
Among other essentials, wheat remained high although supplies from the official sources to mills remained aptly comfortable. Some millers had to purchase the wheat from the open market for meeting the rising demand of this product during the holy month of Ramazan which in turn pushed up the prices in local market.
Physical trading in some leading essential items remained modest which did not cause any major dent, both on upper and lower sides. Therefore, the prices remained stable, although the ready offtake was relatively slow.
Dealers said that the fresh supply, both from the commercial houses and the official sources remained fairly steady keeping the consumers and retailers away from the wholesale outlet on perceptions of fairly comfortable stocks in this holy month.
Reports from the retail sector were not encouraging as majority of the retailers, notably of essential items raised their selling prices according to their whims after purchasing in bulk from the wholesalers at much cheaper rates, they said.
Wheat and sugar were the only exception which did not follow the general line of supplies both from local and official sources. Both were being sold at modestly higher rates. Wheat was marked up by another Rs5 per bag after early sharp rise as supply position improved. Sugar rates varied from one centre to another in line with the retail prices in those areas.
However, there was not any pressure on the supplies and despite liberal delivery to retail outlets by the TCP. Importers and agents of local mills generally held the price line at the buyers’ end.
According to the Pakistan Sugar Mills Association (PSMA) an unsold stock of 0.485 million tons from the previous crop was lying in godowns and they were holding it to keep the prices at current level.
Whether or not sugar at the retailers’ end would ease once the local mills resumed crushing after Eid is a big question but predictions of another lower crop could keep the prices up during the next season also, dealers said.
Pulses and rice remained stable around previous levels despite higher exports of the latter as supplies matched the local demand and there were no reports of holding back of stocks by the brokerage houses. IRRI-broken was an exception which rose by Rs10.
Cereals stayed under pressure as supplies from the upcountry markets showed improvement following selling by the local stockists. Prices of maize and bajra fell by Rs25 to 200 per bag. On the other hand guar seeds were quoted higher by Rs25 to 50 on reports of lower new crop.
Oilseed section ruled firm as prices of major seeds, including cottonseed, rapeseed and castorseed were quoted unchanged. Til was an exception which fell by another Rs100 per 40kg amid reports of a lower export demand.
Oilcakes ruled unchanged for rapeseed cakes while cottonseed cakes rose by Rs3 followed by reports of a firm oil market.—M.A.
QUIET conditions prevailed on the Karachi wholesale commodity markets last week as commercial houses and brokers held on to their positions, refraining from indulging into speculative trading.
