THE Karachi wholesale commodity market, during the post Eid-holiday week, experienced major either-way price fluctuations on some essential counters as the pent-up demand made bigger showing on the industrial raw material sectors.
The mid-week selling in some types of pulses which effectuated a sharp decline caused sympathetic price erosions on some other counters, as well.
Transportation of commodities from the upcountry markets was badly interrupted due to an extension in Eid holidays which in turn created shortage of the ready stocks, said the dealers.
There was, however, no pressure on any counter as arrivals from upcountry markets showed considerable improvement thus easing both, the supplies and the prices, they added.
They said that despite larger covering purchases made by some industrial consumers, the prices showed modest rise as there weren’t any reports of the hoarding back of stocks by leading brokerage houses.
The interesting feature was the mid-week active selling of some essential items which later fell sharply under the lead of gram whole and dal. The local stockist had released substantial stocks in the open market in the absence of exporters.
On the other hand, some types of imported pulses notably from Australia were quoted higher followed by the reports of pressure on supplies. But dealers mainly indulged in the Indian variety of masoor which was much cheaper as compared to others, including that from Iran.
The resumption of new crop export to different destinations kept the rice sector throughout the week into the limelight as Irri and Basmati did not budge from their price stance.
The supplies of new IRRI crop from the lower Sindh rice belt were on the higher side which restrained major price changes despite a strong presence of the private sector exporters in the market, dealers said. A ship present at the Karachi port was loading the commodity for a Gulf destination while one more was waiting for the berth at outer anchorage to load another consignment.
There was a relative quiet on the sugar front as both, mills in Sindh and Punjab failed in resuming the new crushing season despite the official directives. There, however were indications that some may follow the schedule sometime in the next week.
On the other hand dealers ruled out the possibility of a fall in ruling prices once the new crop arrived and also feared that both millers and importers would try to keep the prices around the current - more than Rs34 per kilo - level after hoarding the commodity.
But a late selling on some essential counters pulled the prices sharply down under the lead of masoor, gram whole and gram dal - ranging from Rs100 to 225 per bag - on selling by some importers.
The largest decline of Rs250 per bag was noted in urad imported type while the rest were mostly traded at previous levels amid falling demand.
Among other essentials wheat, IRRI-6 and sela type of basmati remained under pressure on selling prompted by the reports of steady new crop arrivals from the Sindh markets. But IRRI-9 was marked up on active export demand. The fall, however, was modest.
Wheat eased by Rs5 but sugar maintained the upper echelons as mill-owners further delayed the new crushing season. The new crop was expected to arrive in the market by the end of this month but the dealers ruled out any possibility of a fall in the ruling prices.
Cereals, on the other hand showed firm trend followed by the reports of a fall in arrivals from upcountry markets and a consequent pressure on ready supplies and steady demand.
While barley was traded at last levels, maize and bajra came in for active support and were quoted higher by Rs10 to 100 - major rise being in maize on active support extended by the processors.
Guar came in for modest selling followed by the reports of harvesting of the new crop and steady arrivals in the wholesale markets.
Oilseed sector remained dormant as the prices of major seeds, including cottonseed, til and castorseed were firmly held at previous week’s levels amid modest activity. Rapseed type, however, was an exception which rose by Rs10 for Nawabshah and Mipurkhas varieties, followed by active support extended by the processors.
Oilcakes came in for strong buying followed by the reports of slow arrivals from upcountry markets.
Cottonseed cakes witnessed price flare-up on speculative trading and were quoted higher by Rs110 to 130 per bag.
Rapeseed cakes also rose by Rs30 to 33 per 40kg in sympathy with the cottonseed cakes and to the increase in rapeseed prices.—M.A
THE Karachi wholesale commodity market, during the post Eid-holiday week, experienced major either-way price fluctuations on some essential counters as the pent-up demand made bigger showing on the industrial raw material sectors.
