PHYSICAL activity on the Karachi wholesale commodity markets during the previous week remained a bit slow as buyers were not inclined to make fresh purchases at rising prices of most of the essential items.
The notable feature of the week was the rice prices, which were on the higher side for the last couple of weeks, suffered sharp fall on active selling by local dealers and a considerable fall in demand from exporters.
Both IRRI and basmati types came in for heavy battering, late in the week, and closed lower by Rs200 to Rs400 per bag for the fine types.
Wheat prices, which had eased last week, again remained under pressure and rose followed by reports of short supplies to the mills and comparative increase in flour prices at the sellers’ end, market sources said. As a result, commercial traders, who had been holding substantial stocks of the commodity, released stocks on the open market at a higher price, they added. At the same time fresh buying by some of the mills from open market to keep the wheels moving pushed the prices higher again, they said.
Owing to an increase of Rs100 per bag in prices of wheat, instances of sympathetic rise in prices of some other essential items were not wanting, leading to slow ready off take on most of the active trading sectors, commercial dealers said.
Bulk of the buying remained confined to wheat and pluses sector where prices recorded changes in line with demand and ready off take, although there was no panic among consumers.
A leading broker said that in the prevailing uncertain political conditions leading commodity traders seldom hold long unsold positions in any of the commodity fearing price decline but there were no instances of panic selling as big dealers are holding on to their stocks.
The city government’s current drive against price hike of essential items at retail level did ease prices of some of the essential items but had no impact on the wholesale counter, he added.
Dealers said both retailers and some wholesalers stayed on the sidelines most of the time hoping fall in prices followed by reports of steady arrivals from upcountry trading centres but there was no easing in the price of any of the essential items.
There was also no signs of pre-Eid panic buying on any of the counters but instances to stray covering purchases by some of the dealers from Punjab was not lacking, which in turn, pushed prices modestly higher on some counters, they said.
There was a relative quiet on other essential counters including rice where physical shipments of the new crop to a number of countries are being made. Meanwhile, sugar mills are expected to resume crushing season from Nov 1, and dealers said new crop supplies could push prices of the commodity further lower at retail level during the next couple of weeks.
The market decline was led by the rice sector where prices of IRRI-6 and IRRI-9 types fell by Rs75 to Rs100 per bag, fine type notably kernel varieties were marked down by Rs200 to Rs400 per bag.
Other type of basmati including coarse one were quoted lower by Rs100 to Rs200 per bag as larger new crop arrivals from upcountry market and falling export demand triggered panic selling.
But, on the other hand, other essential items remained expensive under the lead of wheat, which was quoted higher by Rs100 per bag, while some type of pulses came in for active support and rose by Rs25 to Rs200 for urad, masoor and some other varieties.
While gram whole and gram was firmly held around the previous levels, masoor pulse came in for active selling at the weekend and was marked down by Rs200 per bag.
Among cereals, barley was quoted higher by Rs50 per 40 kg followed by reports of slow arrivals from the upcountry markets and increase in export demand.
Others including bajra, jowar and maize were traded at previous levels as supplies matched the local demand thanks to steady arrivals from upcountry markets.
Oilseed sector lacked normal buying interest and prices of major seeds including rapeseed, castorseed, til and some others were quoted unchanged but cottonseed showed divergent trend depending on supply position and arrivals from the ginners.
Oilcake on the other hand showed firm trend as prices of both rapeseed and cottonseed cakes were quoted higher by Rs10 to Rs85.—M.A.
PHYSICAL activity on the Karachi wholesale commodity markets during the previous week remained a bit slow as buyers were not inclined to make fresh purchases at rising prices of most of the essential items.
