WHEAT prices on the Karachi wholesale market last week declined further partly attributed to steady arrivals from the interior and partly to official warning to hoarders to release stocks in the open market.

The decline was, however, orderly and did, in no way, reflect panic selling by leading stockists, although market sources believe sanity will prevail on this vital sector.

News that the Trading Corporation of Pakistan has floated an international tender for the import of 0.1million tones of wheat also influenced higher prices on the perception that a floodgate of imports will soon be opened, which could depress further in post-Eid trading, market source said.

But the possibility of any big fall in wheat prices was ruled out, as the hoarders of the commodity meant for smuggling, have a strong holding capacity and would wait till changes in the policy, they added.

However, as was widely speculated that wheat prices flare-up could spillover to other essential counters was contained partly by some official steps and partly to resistance offered by general consumers.

Among essential sectors, prices of some type of pulses did rise sharply under the lead of masoor but dealers attributed it to higher prices in the international markets rather than profiteering by local traders.

Bulk of the pulses are imported from various countries and their prices are generally quoted on the international prices but their higher landing cost did impact the prices of locally produced varieties, notably gram whole and gram pulse, market sources said.

Prices on the rice sector remained stable despite steady export of the commodity under previous export contracts. However, prices of all varieties remained stable uninfluenced by prices of items of other essential sectors.
As new crop arrivals were maintained on the higher side, prices did not show much change as supply gaps were quickly filled in. Even reports of damage to rice crop in Sindh owing to rain and flood water from Balochistan, prices remained unchanged.

Sugar prices also remained around previous level as some mills and local stockists continued to unload their long positions followed by reports of resumption of crushing season by the middle of next month, dealers said.

Much of the activity remained confined to the pulse sector where prices generally rose partly because of pressure on ready supplies and partly to a considerable increase in consumer demand.

Gram whole, gram pulse, masoor, moong and urad remained in strong demand throughout the week both from local and upcountry dealers and were quoted higher by Rs100 to 125per bag, but the largest rise of Rs200 was noted in imported masoor.

Guar seed also followed the lead and was marked up by Rs25 as industrial processors resumed their covering operations against their export commitments, dealers said.

Fresh increase in wheat prices was halted as supply positions slightly improved followed by a modest fall of Rs25. Rice sector did not show much change as supply position remained fairly steady after new crop arrivals from Sindh and a slow down in exports. While prices of fine type were firm at the last levels, IRRI-6 closed with a modest rise of Rs25 after early fall on local selling.

Cereal sector showed firm trend as prices of major items, mainly maize, barley, jowar were firmly held at previous levels barring bajra, which came in for renewed selling and was quoted lower by Rs50 per bag.

Oilseed prices mostly remained unchanged and prices of major seeds were quoted around previous level after early fall. Til followed them on reports of fall in export demand but castor seed rose by Rs25 on active support extended by local crushers.

Oilcakes showed divergent trend. While rapeseed cakes fell by Rs10 on weak oil market, cottonseed cakes were held unchanged.—M.A.