THE wholesale commodity markets showed mixed trend last week due to improved supplies on some counters. This triggered selling by some leading commercial houses. Arrivals from the upcountry markets were active, which in turn prompted selling on some essential counters, notably in some pulses.
Wheat was notable which maintained its downward trend modestly. The steady release of stocks by the government to the millers continued to inspire fresh selling by the local stockists, dealers said.
The bearish reaction on this counter was on the reports that a consignment was docked at the port with about 15,500 tons of imported wheat. This commodity was expected to find way into local markets soon, said the brokers.
The price fall for the third week in a row was modest. It checked further increase in wheat flour prices and its bye-products, they added.
But on the other hand sugar remained expensive despite reports of steady new crop arrivals of the commodity from some local mills, market sources said.
However, others said that the prevailing tussle in cane prices between the crushers and the growers had, considerably reduced the daily operations of some mills in the Sindh sugarcane belt. This was due to the suspension of supplies by the growers, they said.
Mills were purchasing the cane from growers for about Rs60 per maund as against the official rates of Rs45. The growers were said to be demanding further increase, they added.
That was perhaps why crushers were passing on the increase in overheads and inputs to the general consumer as was reflected by a fresh price increase despite resumption of the new crop season which in normal situations lowers the prices.
Physical shipments of rice against the forward deals were on higher side as some exporters were busy in meeting the deadlines before the current year was out.
However, reports coming from the Sindh rice belt indicated that the prices of IRRI had sharply declined owing to a reported bumper crop. Growers now were demanding an upward revision in the official procurement rates, dealers said.
In physical trading, price changes were mostly on the lower side on renewed selling caused by the reports of steady arrivals from the upcountry markets, and partly to selling by the local stockists.
Sugar was quoted at previous levels, reflecting short supply. However, in Juna market it was quoted sharply higher amid reports of pressure on ready supplies. The net rise was of the order of Rs300 per bag.
After early decline, wheat on the other hand, managed to finish with a modest increase of Rs5 followed by the reports of some problems being faced by the millers in supplies from the official sources.
Pulses on the other hand showed quietly easy trend. While masoor whole and dal suffered fall ranging from Rs50 to 100 per bag, despite steady demand, all other varieties including gram, urad, and moong were traded at previous levels.
Rice sector stayed firm on steady exports. But reports coming from the Sindh rice belt said that the growers were worried over the falling prices of IRRI owing to a bumper crop and oversupply.
Physical shipment of the commodity was maintained on the higher side as rice loaders from various countries remained in the port loading the commodity against their Letters of Credit. Prices remained firm around previous levels.
Some major industrial raw materials on the other hand, came under pressure and fell by Rs50 to 75 per bag for guar seeds on selling prompted on the reports of steady new crop arrivals and slow mill offtake.
Cereals on the other hand showed firm trend as prices generally held on to previous levels under the lead of maize, jowar and barley, while bajra was quoted higher by Rs50 per bag.
Barring a modest decline of Rs25 per 40kg castor seed, followed by the reports of slow export demand from both, crushers and exporters, other major oilseeds were again traded at last levels under the lead of cottonseed and rapeseed.
Til resisted a fresh decline on the revival of export demand at lower levels and was held unchanged after a persistent decline during the last couple of weeks.
Oilcakes again showed divergent trend. While rapeseed cakes posted a fresh fall of Rs2 to 3, cottonseed cakes rose by Rs10 to 15 amid reports of short supply.—M.A.
THE wholesale commodity markets showed mixed trend last week due to improved supplies on some counters. This triggered selling by some leading commercial houses. Arrivals from the upcountry markets were active, which in turn prompted selling on some essential counters, notably in some pulses.
