PHYSICAL activity on the Karachi wholesale markets during the previous week considerably slowed down as consumers stayed away, and unlike the previous weeks did not make panic buying, but covered positions where prices of some essential items, including pulses, fell.
Prices of some of essential items did rise but modestly followed by reports of steady arrivals from upcountry markets and the absence of panic buying from any of the sectors, dealers said.
As a result, price changes on most counters of essential items were normal and did not reflect panic, which had been the hallmark of commodity trading during the last couple of weeks, they said. Another price stabilising factor was said to be substantial increase of some type of pulses by importers, which, in turn, did not allow fresh increase in prices of essential items on the one hand and contained sympathetic price increases on the other, they added.
However, much of the activity again remained confined to the pulses sector, as some of the wholesalers from other markets covered positions at the prevailing prices apparently anticipating an increase in prices in the coming weeks, some others said. They said fresh increase in sugar prices did worry consumers as for the second week commercial houses had slowed down the release of fresh stocks of the commodity to markets.
But commercial houses claimed the mill-owners had raised prices of sugar after holding back stocks in an apparent effort to keep prices on the higher side as their demand for a buffer stock of half a million tones of the commodity failed to find favour with officials, they added.
There is, therefore, a difference of about Rs5 between the selling prices in the open markets and the official retail selling outlets and indications are that the gap could further widen in the coming weeks.
On the rice sector, prices remained stable around the previous level since the suspension of exports as all exportable surplus of IRRI type had been exhausted, market sources said.
However, prices of fine type, notably sela and kernel, were maintained around the previous all-time peak levels amid reports of active local demand and stray export enquiries, they added.
Mixed trend was seen on the pulses sector for the first time after a sustained increase during the last couple of months amid active trading followed by reports of steady arrivals from the upcountry markets.
While prices of urad and moong were marked down by Rs100 to Rs 225 per bag on selling by a leading importer, peas, gram and gram dal, masoor (imported) and beetle rose by Rs100 to Rs225 per bag.
Among other essentials, both wheat and sugar prices eased from the current higher levels as supply position improved. While the former fell by Rs20, the latter was marked down by Rs80 to Rs100 per bag.
Barring a fresh fall of Rs50 in IRRI-6, rice sector lacked normal trading interest as retailers and general consumers did not make larger buying at the higher rates.
Cereals on the other hand again lacked normal buying interest amid reports of steady arrivals and comfortable ready position. Maize was, however, an exception, which fell by Rs75 on selling prompted by reports of steady arrivals of new crop.
Bajra, jowar, and barley, on the other hand, were firmly held at the last levels and bulk of the business was done at the previous levels.
Oilseed sector showed firm trend under the lead of rapeseed, which was quoted higher by Rs25 to Rs35 per 40 kg followed by reports of short supply and higher oil and cake rates.
Major export items, notably til and castorseed did not show much price changes followed by the reports of absence of local exporters and oil crushers.
Oilcakes, on the other hand, showed mixed trend amid alternate bouts of buying and selling. While rapeseed cakes stayed firm in sympathy with oilseed, cottonseed cakes were quoted lower by Rs50 on selling followed by steady new crop arrivals from lower Sindh ginneries.—M.A.
PHYSICAL activity on the Karachi wholesale markets during the previous week considerably slowed down as consumers stayed away, and unlike the previous weeks did not make panic buying, but covered positions where prices of some essential items, including pulses, fell.
