Trading on the Karachi wholesale markets remained modest last week as prices of major essential items, notably sugar and wheat showed minor either-way changes.

However, other essential items were mostly quoted high as retailers kept increasing the rates despite reports of comfortable ready position, dealers said.

There was a great difference between the selling price on the wholesale and retail levels as the latter do not mostly operate in line with the supply and demand factors but sell essential items at higher rates - well beyond their normal profit margin, they said.

The majority of wholesalers offload their long positions in line with the ready position and the size of arrivals from the upcountry trading centres, they added.

As speculated that sugar will fall from their current levels once the new crushing season resumed there was no change in the wholesale rates despite reports of modest new crop arrivals from some local mills.

There were also unconfirmed reports that some Punjab millers who had resumed the new crushing season from November 15, were in the market selling the produce at the prevalent rates.

Some crushers have imported a big consignment of 32,000 tons of raw sugar for processing during the last week which will find way into local selling channels soon after processing, the market sources.

However, it was speculated that the sugar prices may stay high during the current season also, irrespective of the conflicting reports about the procurement prices being paid to growers, they said.

Rice sector ruled firm owing to reports of steady export of the new crop. Prices of both, fine varieties of basmati and IRRI types stayed firm around their previous levels despite steady new crop arrivals from the Sindh markets.

Wheat on the other hand suffered fresh modest fall on active-dealer selling followed by the reports that Pakistan had purchased another half-a-million tons of wheat from the international markets to bridge supply gaps and stabilize prices.

Although, rice and sugar sector managed to finish the week on a firm note, all other essential items came in for active selling after mid-week prompted by reports of higher arrivals from the upcountry markets.

Steady export of rice throughout the week absorbed the negative impact of more new crop arrivals from the Sindh markets. IRRI broken was an exception which remained under pressure and suffered a modest decline, while fine basmati varieties were held unchanged.

Sugar, on the other hand stayed unchanged at last levels followed by conflicting reports about resumption of crushing season. Latest reports indicate that the price tussle between the millers and growers continued and the latter had stopped cane supply to crushers until prices were raised.

Pulses marked the market decline under the lead of moong, masoor dal which fell by Rs50 to 60 per 100kg bag. But a bigger fall of Rs250 was noted in urad which fell from its peak level on late selling. Others were held unchanged under the lead of gram whole and gram dal.

Wheat followed them but the decline was a fractional Rs5 as supply position remained fairly comfortable on selling by the commercial dealers and stockists.

Among major industrial raw materials, guar was leading which suffered a fall of Rs55 on selling by some leading stockists ahead of new crop arrivals. Barley too, stayed unchanged and was quoted at the previous level.

But on the other hand rapeseed, cottonseed and castorseed were held unchanged at previous level and bulk of the business was done on the same rates despite reports of slow arrivals from the upcountry markets.

Til was an exception which came in for active selling followed by reports of steady new crop arrivals and falling demand. It closed the week with a fresh fall of Rs80 per bag.

Barring bajra, which came in for renewed selling followed by steady new crop arrivals from the Sindh markets was marked down by Rs25 to 50 per bag. Others, including maize and jowar were quoted unchanged.

Oilcakes showed easy trend as prices of both rapeseed and cottonseed cakes were marked down - major fall of Rs20 to 25 per bag was noted in the latter on speculative selling.—M.A.