WHEAT prices on the Karachi wholesale markets eased from last weeks high as the supply position improved. However, it caused price spiral on counters of some other essential items in sympathy, according to local brokers.

After a warning to the hoarders of wheat, ready supply position showed a modest improvement and led to selling by commercial traders, which cut its prices from the peak levels between Rs25 and Rs50 to around Rs1,400 per bag of 100kg, they said.

Arrivals of some other essential items from upcountry trading centres also remained on the lower side, which resulted in a fresh price flare-up on some counters.

Dealers said the price situation during the holy month would remain acute as the profit-based trading community would continue to play its game, never loosing its grip on the price line of its own choice.

Activity in wheat was relatively slow as no one was inclined to make fresh commitments at the rising prices anticipating easing after some corrective measures by officials to forestall fresh rise, but panic prevailed, they said.

Consumers were expecting that import of a million tons of wheat from different sources would ease the situation.

However, there were no such signs and instead prices went up from the previous levels over the week, they said.

“Leading stockists, who were already cornered with the floating stock of the commodity, seem to be in mood to ease their grip on their holding at least for the near-term until some drastic steps are announced against the hoarders”, they said.

Market sources did not accept the view that bulk of the wheat had been smuggled by local traders.

Rather they were of the view that the bulk of the commodity was with the hoarders within the country and would be sold at a higher price at opportune time.

A bumper crop of about 23 million tons leaves behind a surplus of about 3m tons after meeting the domestic demand, some analysts said adding “a part of it could fined its way to other markets, but not the entire surplus. And if it was true then the fault lay with the officials”.

The perception that the imported stuff could take months to reach the local selling outlets, would not ease the situation and inspire panic buying among flour mills and consumers, they added.

Some other essential items, mainly pulses and sugar, also showed sympathetic increase in prices, but general consumers kept to the sidelines.

While prices of gram whole and gram pulse rose from the recent lower levels by Rs100 per bag, others were traded at previous levels barring beetle, which rose by Rs50.

Rice sector did not show much change as ready position remained comfortable owing to steady arrival of new crop from Sindh.

Barring IRRI-6, which fell by Rs35, all other varieties were traded at the last levels amid physical shipments of the commodity to different countries.

Sugar prices also remained stable as there was no pressure on the ready supplies and bulk of the consumer demand was met by official retail outlets.

Cereal sector showed firm trend as bajra price rose by Rs75 to Rs250, while barley was quoted higher by Rs50 per bag followed by reports of slow arrivals of the commodity from upcountry markets.

Active trading was witnessed on the oilseed sector where prices of cottonseed were quoted higher by Rs35 to Rs40 per 40 kg, and castorseed rose by Rs25 to Rs50 followed by reports of active export demand.

Prices of til and rapeseed did not show any change and the bulk of the business was carried out at previous rates. Ready supplies were sufficient to meet the demand.

Oilcakes showed mixed trend and cottonseed cakes fell between Rs30 and Rs80 per bag followed by arrival of new crop. On the other hand, rapeseed cakes rose by Rs15per maund in sympathy with higher oil rates.—M.A