TRADING activity on the Karachi wholesale commodity markets last week remained relatively slow partly owing to the monsoon rains and partly to slackness in demand followed by selling by some commercial houses.

Prices of some essential items suffered fresh fall despite interruption in arrivals from upcountry because of rains and the consequent transportation problems amid reports of increase in freight rates after the increase in petroleum prices.

Dealers said the fall in prices of wheat and some varieties of pulses reflects decrease in ready demand rather than any improvement in the supply position. They fear the prices will rise again after the current monsoon spell.

They said Letter of Credits under the new trade policy for import of some varieties, mainly pulses, are being opened by commercial importers, and the relative calm indicates that they could further fall after the arrival of fresh consignments.

Some others said the recent steps taken by officials to contain increase in prices were the main factor behind the decline in prices of some essentials items. Sugar prices, which had been rising for couple of weeks, eased modestly followed by reports of ban on its export. According to mill sources, the export target of 0.4 million tones was, however, met.

Prices of sugar could ease further in the coming weeks as sufficient stocks are lying in mill warehouses out of the total crop of 4.5 million tones, during the current season, which was a record production, millers claimed.

There was a relative calm on the rice counter as both exporters and commercial houses were awaiting arrival of new crop possibly by the end of the next month from the Sindh rice belt.

Its prices, however, remained stable around previous levels for all varieties after having eased sharply after the fixation of the minimum export prices, market sources said.

They said another bumper crop could ease its prices further as they were still sharply higher as compared to comparative figures for the last season.

Prices of some industrial raw materials, on the other hand, showed increase during the week followed by reports of building up of long positions by leading consumers. Guar seed and some others were leading among them.

Towards the fag-end of the week, prices showed mixed trend amid alternate bouts of buying and selling but the main feature was that some rice varieties suffered sharp fall including kernel type, which fell by Rs200 to Rs1,100 per bag on reports of slack demand from exporters and local bulk consumers.

On the other hand, IRRI-6 and basmati came in for renewed support as arrivals of new crop from Sindh markets was delayed. Both posted gains ranging from Rs50 to Rs300 per bag, while sela type was traded at previous rates.

Pulses also came in for stray selling and fell by Rs150 per bag under the lead of gram whole and some others, while moong, masoor and urad varieties were firmly held at the last levels.

Among other essentials, wheat came in for renewed selling as supply position improved and fell by Rs100 per bag but there was no change in prices at the retailers’ end. Sugar followed it, falling by Rs50, but bigger fall was noted in gur, which fell by Rs500 per 50 kg bag, while desi sugar was held unchanged.

Cereals also showed fresh rise under the lead of bajra, barley and guar seed, rising by Rs50 to Rs150, but maize and jowar remained pegged at previous rates.

Cotton maintained its upward drive on reports of damage to the crop and was quoted higher by Rs200 per maund. Cotton seed followed it in sympathy and was quoted higher by Rs50.

Other major seeds including rapeseed, castor seed, and til lacked normal support and were firmly held unchanged at previous levels amid slow ready off-take.

Oilcakes ruled unchanged for both rapeseed and cottonseed cakes in the absence of demand from the crushers.—M.A.