PHYSICAL trading on the Karachi wholesale markets remained insipid last week as leading brokers and traders were in the post-holiday mood and did not make big commitments on any counter.
The post-Eid holiday week was sluggish as a major part of it was spent in exchanging greetings rather than entering into physical business on essential counters.
In the market parlance, prices of essential items rose owing to the pent-up demand. As supplies were enough to meet the daily demand most were traded at previous rates.
Ready position was fairly comfortable - thanks to more arrivals from the upcountry market after mid-week which in turn had a stabilizing impact on prices.
Dealers said that the demand for pulses from the upcountry was low which was expected to pick up by the next week. This did not bring about any major changes on essential counters.
Another satisfying feature was the arrival of fresh consignments of the imported pulses over the week. Leading importers were not inclined to hold long positions in view of price variations therefore, supplies were fairly regular and did not allow major changes on any counter, they said.
Market sources said that there were no hoarding back signs of essential commodities as was reflected by minor either-way changes in the prices towards the end of the week.
On export front, shipment deadlines of rice were maintained as loaders who had called on the port departed after loading the commodity meant for various destinations.
Meanwhile, there were reports from the mills and official sources that most of the mills in the Sindh sugarcane zone will resume new crushing season from November 15 and the new crop was expected to arrive in the market by the end of the month on a modest scale.
However, it was not clear as to whether or not the new crop arrivals will pull the current sugar prices down at retail level. If importers and mill-owners joined the hands, it may stick around the current levels, they said.
In the physical trading, the post-holiday season saw a good bit of covering purchases on essential counters due to a big pent-up demand in the backdrop of pressure on local supplies.
Dealers said that because of the holidays, arrivals from the upcountry remained relatively slow which caused the price flare-up on some counters under the lead of pulses.
Beetle, urad and masoor dal were leading among them which posted gains ranging from Rs200 to 300 per 100kg bag as leading importers held on to their stocks, they said.
Peas followed them after rising up by Rs65, while other types of pulses including gram, gram dal and moong were traded at last levels amid active business. Arrivals from the upcountry market were fairly steady which did not allow any major price changes.
Wheat followed them on reports of pressure on local supplies in the open market. Prices were quoted higher by Rs25 per bag but millers were not inclined to make fresh commitments at higher rates.
Sugar did not show any changes and dealers were expecting some softening once the new crop from the Sindh mills arrived. Most of the mills have indicated to resume crushing from November 15.
The recent tender invited by the TCP to sell another 0.1 million tons of the commodity failed in impacting the retail prices negatively as stockists and mills - who posses an unsold stock of half a million tons - held on to their unsold positions.
Despite steady physical shipments against the forward deals, IRRI varieties showed modest decline owing to larger new crop arrivals from Sindh. Both, IRRI broken and IRRI-9 varieties suffered modest fall ranging from Rs10 to 25.
Fine varieties including sela and kernal types of basmati were traded at previous levels in the absence of strong foreign demand owing to tough competition from India and some others.
Barring guar seeds which were quoted lower by Rs20 to 45 per bag, other industrial raw materials were traded around the last levels amid modest ready demand.
Among the cereals, maize posted a fresh rise of Rs50 despite the arrival of new crop while bajra and barely were quoted unchanged amid slow trading.
Oilseed sector remained dormant as both cottonseed and rapeseed were traded at last levels and so did castorseed but til suffered a fresh decline on selling prompted by steady new crop arrivals from the Sindh markets.—M.A.
PHYSICAL trading on the Karachi wholesale markets remained insipid last week as leading brokers and traders were in the post-holiday mood and did not make big commitments on any counter.
