THE pre-Eid holiday trading week on the Karachi wholesale commodity markets was featured by an increase in wheat prices after the government announced support price at Rs950 per 40 kg from the previous Rs625.

The net rise in wheat price during the holiday trading was Rs200 per bag of 100 kg but floor brokers said it could rise further depending on the supply position.

On the other hand, prices of other essentials, mainly sugar, gram dal, rice IRRI types and kernel variety were quoted lower by Rs140-500 per bag on selling by local stockists.

Price movements on other counters were narrow and were confined mainly to some essential items, but cereal and industrial sectors remained mostly neglected for want of support.

Market sources said arrivals from upcountry markets were falling each day as cargo haulers had raised fare owing to pre-Eid holiday rush of booking by exporters to meet the physical shipment deadlines of various consignments for foreign destinations.

They said the week preceding Eid holidays would pass through dull trading as both sellers and buyers would not make fresh commitments owing to financial risks involved in the long-post-holiday weekend ahead.

But despite steady decline in arrivals of essential commodities from upcountry trading centres, prices barring few changes here and there, remained mostly stable around previous levels.

As a result, prices of essential items were firmly held at previous levels. Dealers said prices of most items had shown sharp decline last week but stockists held on to their positions and did not try to create artificial shortage of any essential commodity.

The pulses sector lacked normal trading interest as most sought after item, gram whole, was firmly held with the departing holy month and with it its strong demand, dealers said. Gram dal was an exception, which fell by Rs500 per bag.

Wheat, which had increased to an all-time high level of Rs2,500 per bag plus owing to problems on the flour front, rose further higher after the sharp increase in the support price, they said.

Sugar was, however, an exception, which maintained its upward drive for the fourth week in a row apparently owing to higher consumption during the holy month and pressure on ready supplies because of higher exports. But later fell by Rs50 per bag on late selling.

Some others said the higher fixation of sugar cane price at Rs81 per maund for the new crushing season was one of the reasons behind the persistent increase in its price.

Barring a fresh sharp fall of Rs500-700 per maund in coarse basmati, and Rs140-200 in IRRI types, rice sector stayed dormant followed by reports of steady export enquiries both from new and traditional importers.

The future price trend will be observed after new IRRI crop starts arriving from Sindh, dealers said.

Sugar, on the other hand, remained in active demand during Eid and its prices were quoted further lower by Rs50 per bag. Desi sugar rose by Rs200 per bag on active broker demand.

Barring urad, which was quoted higher by Rs375 per bag of 100 kg followed by reports of short imports during the last couple of weeks, other pulses were mostly traded at the last levels under the lead of gram whole and gram dal, being one of the major item on the consumer weekly demand list.

Among coarse rice varieties, IRRI-6 came in for active selling despite reports that a rice loader had arrived to load about 13,000 tons of the commodity during the next week.

Cereal sector lacked fresh support from any quarter and as a result prices of maize, jowar, bajra and barley were firmly held at the last levels.

Major oilseeds did not show much changes in price and were held unchanged under the lead of rape seed, but cottonseed rose by Rs20 and so did til, which spurted by Rs400 on revival of export demand.

But castor seed, on the other, hand remained under pressure owing to steady arrivals from Balochistan and marked down by Rs50 per 40 kg.

Oilcakes showed divergent trend. While rapeseed cakes were again held unchanged, cottonseed cakes fell by Rs20 on selling followed by steady new crop arrivals.—M.A.