AFTER having risen to new peak during the holy month of Ramazan and post-Ramazan trading sessions, prices of some essential items declined modestly as supply position improved, floor brokers said.

The lead was provided by wheat which, after rising to its peak after increase in its support price to Rs950 per 40 kg from Rs625 a couple of weeks earlier, was marked down on active dealers’ selling, they said.

The bulk of the selling came from commercial traders who had built-up long positions to sell the commodity at further higher levels followed by reports of increase in imports during the last couple of weeks.

According to official sources, about 1.5 million tones of wheat have been imported from various sources during the last couple of months to make up the local shortfall. But the impact of fall in wheat prices is still not reflected at the retailers’ level. The price situation is expected to ease further during the next couple of weeks as mills had received fresh increased supplies, market sources said.

The sources said that despite a decline of Rs80 per bag in wheat price, it was still ruling sharply higher from the average selling rate of Rs2,300 during the last couple of months. The prices may not ease further until the new crop arrives on the market sometime next April, they said.

The modest fall in sugar prices, after the recent increase, was welcomed by the consumers. Its price had increased by about Rs3 per kilo after reports of higher fixation of sugarcane price for the growers at Rs81 per 40 kg, dealers said.

On the other hand, rice sector showed firm trend followed by reports of short supply as the harvesting of new crop was said to be well in progress in some areas.

There is a relative quiet on the rice export front as private sector exporters are awaiting normal arrival of new crop before making fresh export commitments.

According to them Pakistan is exporting a record 3m tones of rice during the current season followed by reports of another bumper crop of well over 6m tones.

Among other essential items, pulses remained dormant under the lead of gram whole and gram dal as well as imported masoor and urad type amid falling consumer demand at least for the near-term.

Towards the fag-end of the week, the price situation showed a modest change as some other essential items resumed their upward drive followed by report of pressure on ready supplies.

Rice sector led the market advance under the lead of both IRRI and basmati types, which rose by Rs100-200 per bag for IRRI type, but basmati varieties were quoted higher by Rs100- 300 followed by reports of steady export enquiries. Kernel and sela types, however, did not show any change in the absence of export demand and were held unchanged at the last levels.

Among other essentials, sugar again came in for modest support and was quoted higher by Rs50, but gur rose by Rs300, while desi sugar did not show any change for want of fresh support.

For the third session in a row, pulses sector remained dormant as prices of gram whole, gram dal, masoor and masoor dal and urad were held unchanged at the last levels. Beetle imported type was and exception, which rose by Rs200 per bag.

Though wheat suffered a fall of Rs80 per bag, it still stayed on the higher levels. Dealers said further pruning may be on the card as four ships loaded with around 0.200 tones of wheat had arrived during the week.

Among cereals, both bajra and guar were quoted lower by Rs50-150, maize and barley was traded at the previous week levels.

Major oilseeds, including cottonseed, rapeseed, til and castor seed were firmly held at last levels but cotton price suffered sharp fall on late week selling.

Oilcakes stayed unchanged for rapeseed cakes, while cottonseed cakes rose by Rs70 per bag on reports of active support extended by the crushers.

—M.A.