PRE-HOLIDAY mood prevailed on the Karachi wholesale commodity markets during last week as commercial and brokerage houses mostly kept to the sidelines and did not take positions ahead of a long holiday weekend.

Arrivals from the upcountry markets were on the lower side of the weekly average because of the transportation problem as leading cargo haulers remained busy in relief work in the earthquake-hit areas.

However, there was no pressure on the supplies as brokers and retailers did not opt for hoarding and covered their positions only to bridge the supply gaps.

Prices of both essential and industrial items remained stable. Those were available at the previous week’s levels, although there were some exceptions, dealers said.

The arrival of new crop IRRI from the Sindh rice belt was on the higher side as dealers and private sector exporters made active purchases at the falling prices, they said.

They said that it was interesting to note that the demand for local IRRI types in the world market was picking up but prices during the last couple of sessions fell from the previous highs.

Reports were received that Sindh was harvesting a good crop while steady arrivals from the interior kept prices depressed for the benefit of exporters and local dealers.

The Sindh’s IRRI-9 suffered a decline of Rs125 to 150 per bag during the week on selling prompted by larger new crop arrivals despite strong foreign demand. IRRI broken while following fell by Rs10. But fine varieties including sela and kernal basmati were traded higher.

There was no change in sugar prices which remained firm around previous levels despite larger release of the imported stuff by official sources and some private sector importers.

Market sources feared that the current tussle between the growers and the mills over procurement price of sugarcane could further delay the new crushing season. These were having pressure on ready supplies.

The Sindh government had raised the price to Rs48 per maund from Rs42 but the growers were demanding Rs60 which could further delay the crushing season, brokers feared.

Ealiers, mill owners had indicated to resume crushing from November 15 but the growers had announced not to send supplies to mills until their demand about the price increase was met.

After the last two weeks’ persistent decline wheat prices stayed unchanged as pressure on supplies eased and mills increased their supplies to local market during the last week of the holy month.

Pulses followed them but largely traded at the previous levels as supplies matched the local demand. Moong was an exception which came in for modest support amid reports of slow arrivals from the upcountry markets. It was marked up by Rs65 per bag. Others were held unchanged.

Among the industrial raw materials, guar seed posted fresh rise ranging from Rs50 to 75 per 100kg bag followed by reports of another short crop in the Sindh guar seed belt of Tharparkar and some other areas due to the lack of rain after sowing. At the time of sowing there were more rains then but the tender plants dried up owing to the lack of water.

Although guar seed crop in Balochistan and Punjab was normal but the supply gap from Sindh pushed the prices higher again leaving negative impact on export front of its by-products, markets sources and processors said.

Cereals on the other hand were traded at previous levels as supplies were said to be enough to meet the local demand. Prices of maize, jowar, barley and bajra were quoted unchanged at the last levels with stray deals done at the unchanged rates.

Oilseed sector showed quietly firm trend as prices of major seeds including cottonseed, rapeseed and castorseed were firmly held at the previous levels amid active trading.

Til, however, was an exception, which came in for fresh selling followed by the reports of steady new crop arrivals from the Sindh markets. But steady increase in demand triggered short-covering by the exporters and a consequent rise of Rs50 in its price.

Oilcakes followed the lead of seeds and were traded at the last levels for both rapeseed and cottonseed cakes amid active ready offtake. Firm oil market was another aiding factor.—M.A.