THE prices of essential items on the Karachi wholesale commodity markets remained stable due to falling demand and steady arrivals from the upcountry markets. Yet, the prices stayed on higher side of the weekly average as leading stockists and brokerage houses held on to their positions instead of selling at lower rates, brokers said.
Stray business was reported on some essential counters at last week’s levels as some local retailers covered their positions, they said. However, prices at the consumer level remained high in the absence of a controlling authority.
On export front, physical shipments of IRRI, both whole and broken stayed high as a rice loader remained in the port to load the commodity, exporters said.
According to reports from the Sindh rice belt, prices of IRRI varieties suffered a sharp fall because of a bumper crop. Agents and exporters were offering low prices, market sources said.
The latest arrival figures indicate the current crop to cross the figure of five million tons, bulk of which will go to the credit of IRRI varieties, they said.
There, however, was a relative quiet on the basmati front because of a tough competition in international markets. Some leading exporters managed to secure fresh orders from foreign importers, notably for the old crop, they added.
Reports from the sugar front were not encouraging as some crushers had complained of low sugarcane supply by the growers who were demanding higher prices for their new crop. Owing to the tussle on supply front, the prices did not show any changes on the wholesale front during the last couple of weeks.
Wheat remained steady as supplies matched the demand of local mills despite reports of steady arrivals from the upcountry markets. Sowing of the new crop and the market talk of a higher new crop kept the prices around previous levels.
Major industrial raw materials also followed the market’s general trend and were mostly quoted at previous levels under the lead of oilseeds and guar. The ready activity at the unchanged rates was said to be on the higher side.
Imported masoor dal led the list of losers on essential counters which suffered a sharp fall of Rs250 per 100kg bag on selling by the importers and on reports of steady arrivals from India. The Indian variety was quoted around Rs3,100 per bag owing to saving on freight and other expenses, brokers said.
Other types of pulses including gram whole, gram dal, urad, and tuver were traded at last levels as supplies matched the local demand owing to steady arrivals from the upcountry markets.
Other essential items, including wheat and sugar were traded at previous levels as supply position remained fairly stable. However, there was no negative impact on sugar prices despite reports that all mills in the Sindh zone had resumed crushing operations after some initial interruption on the price front, dealers said.
Whether or not the prices would fall after new crop’s arrival will be known during the next couple of weeks. But the dealers had predicted that the reports of a short crop could keep the prices around current levels.
Rice sector showed firm trend amid active exports. Prices of IRRI, which had declined during the last couple of weeks, were quoted around their previous levels under the lead of broken IRRI.
However, reports coming from the Sindh rice belt said that the growers were not getting a fair price of their produce of IRRI type and thus had sought official intervention to ensure competitive prices. As a result, IRRI broken rose by Rs25.
Among major industrial raw materials, guar came in for renewed selling followed by the reports of steady new crop arrivals and consequent selling by the leading stockist, holding long positions.
Cereals showed firm trend as bajra again rose by Rs25 to 65 per bag followed by slow arrivals. But on the other hand maize and barley were held unchanged at last levels.
Market sources said that the new guar seed crop was normal and predicted further fall in the prices once the arrivals got normal. The Sindh crop had been short for the last couple of years because of the rain shortfall. This year it was said to be normal, they said.
Other major seeds including cottonseed, rapseed, castorseed and til were held unchanged at last levels owing to a comfortable supply position.
Oilcakes rose by Rs2 for rapeseed cakes in response to higher seed prices, while cottonseed cakes fell by Rs5.—M.A.
THE prices of essential items on the Karachi wholesale commodity markets remained stable due to falling demand and steady arrivals from the upcountry markets. Yet, the prices stayed on higher side of the weekly average as leading stockists and brokerage houses held on to their positions instead of selling at lower rates, brokers said.
