The activity on the Karachi wholesale markets last week was relatively slow as leading dealers and brokerage houses stayed on the sidelines most of the time amid reports of easy ready position.
The notable feature of the week was sharp rise in prices of guar seed, one of the major industrial raw materials, owing to crop losses in Sindh during recent rains and flood. Its prices were quoted higher by Rs300-600 per 100 kg.
The holiday-shortened week showed general fall in prices partly owing to slack demand and partly to reports of oversupply of some essential commodities under the lead of gram whole and gram dal.
Although the fall in gram prices were modest ranging between Rs50-100 per bag of 100 kg, it had sympathetic impact on other essential items. Dealers failed to pinpoint specific reasons behind this sudden fall in demand.
They said reports of higher sowing of the crop in central Punjab wheat belt and larger imports were keeping prices on the lower side followed by selling by importers.
Wheat prices did not show sharp increase though the trend remained firm as prices rose modestly on active short-covering by flour mills at the current levels. Meanwhile, sowing of the crop was well in progress in some areas, while others would join after harvesting sugarcane in early December.
Among other essentials, Irri-6 came in for renewed selling partly owing to larger arrivals from upcountry and partly to steady decline in exports. Consequently the prices stayed weak. Prices of basmati varieties including kernel and sela lacked active support by exporters and were held unchanged.
As regards sugar there was some improvement as commercial dealers resumed their buying operations. However, the prices remained below Rs60 per kilo in most areas.
Some mills in Sindh were yet to resume crushing owing to various reasons including poor supply of cane by growers on account of lower official price of Rs152 per 40 kg. Major growers were reported to be holding back their crop to sell it at higher prices by the middle of December or early next year.
While prices of white sugar were traded unchanged on the wholesale markets, retail prices were quoted higher on area to area basis. Desi sugar did not show any change but gur suffered fall of Rs200 per 40kg followed by arrivals of new crop.
Cotton prices recovered from the previous lower levels on active spinner buying and was quoted higher by Rs200 per maund and ended around Rs5,300 per maund followed by reports of fall in arrival of phutti and increase in mill demand. The highest rate was recorded at Rs5,600 per maund. The market, maintained its recovery from previous lower levels on active mill support and grand rebound staged by the New York cotton futures.
The cereals sector showed easy trend under the lead of maize and bajra on selling triggered by reports of rise in arrivals from Sindh markets. Jowar led the list followed by others, while maize was quoted sharply higher by Rs100 above previous levels amid stray business. Barley and some other cereals came in for active selling but were quoted lower.
The oilseed sector, on the other hand, showed steady trend under the lead of rapeseed, but prices remained unchanged at previous levels. Prices of other major seeds including cottonseed were held unchanged barring til which fell sharply lower by Rs50 per 100 kg from its previous level. Castor seed was an exception on reports of higher export demand and were quoted higher amid active trading.—M. A.
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