The pre-budget week on Karachi wholesale markets lacked any special feature, as both the commercial and the brokerage houses preferred to keep to sidelines rather than indulging in speculative activity.

Most of the essential items finished on a mixed note with the ready business remaining on the lower side of the weekly volume on this counter. Wheat, sugar and some types of pulses fell, though modestly.

There was no pre-budget speculative trading on any of the counters as brokers were not inclined to follow shadows on the perception that supply and demand factors — as far as the essential commodities were concerned — were evenly balanced.

The other factor which checked speculation was the apprehension about the future political outlook in the backdrop of the rigid positions taken by the opposition and the government on the LFO, dealers said.

In identical conditions as the prevailing one on the political front, commercial and brokerage houses generally play safe and refrain taking long positions in the pre-budget session even at the falling prices.

Dealers said fall in the sugar prices for a second week in a row was understandable because of another bumper crop of 3.7 million tonnes and not so promising export prospects on account of export parity levels. The decline in wheat was not in line with crop reports.

They said the local crop — earlier billed as another bumper crop — may not be on the higher side of the initial projection but was enough to meet the local demand after building up a manageable buffer stock.

The reports that there might not be an exportable surplus of wheat during the current season attracted selling from some the stockists who had build long positions followed by reports of a bumper crop well before the harvesting started in early April.

Pulses on the other hand again showed mixed trend as the price of peas showed fresh gains ranging from Rs30 to 80, while on the other hand gram whole, gram dal and urad suffered decline ranging from Rs10 to 100. Others were held unchanged.

Wheat came in for modest selling and fell by Rs5 followed by the reports of a considerable rise in the arrival from the upcountry markets and slack buying by local flour mills.

Rice sector also remained under pressure as prices of sela and Irri-6 Sindh types posted losses to the extent of Rs25 to 50 but basmati and Irri-6 broken managed to finish higher by Rs10 to 100 per bag on the reports of steady export demand. Irri-6 Sindh was an exception, which came in for stray selling and fell by Rs10 to 20 for both the inferior and superior types, respectively. Sugar on the other hand remained under pressure although the fall of Rs5 was fractional, it reflects strong retailers’ demand and some problems on the export front.

Cereals again showed firm trend followed by the reports of slow arrivals from upcountry markets. Prices of maize and bajra posted gains of Rs20 to 35, the largest rise of Rs100 to 150 per 100kg was recorded in jowar on strong local demand.

Guar prices suffered fall followed by the reports of steady arrivals from the upcountry markets and was quoted lower by Rs80 per bag amid slow trading.

Oilseed sector showed firm trend with the exception of the rapeseed which came in for modest selling at higher level in sympathy with the weak cake market and fell by Rs25 to 50, others were traded higher under the lead of castorseed, which rose by Rs75 and til, up by Rs50 per 40kg. Slow arrivals from the interior markets was said to be the chief reason behind the price flare-up, while til also attracted support from the exporters.

Oilcakes showed mixed trend, while rapeseed cakes suffered fall ranging from Rs10 to 12 in sympathy with the weak seed market, cottonseed cakes rose by Rs10 for fine type, while its inferior variety fell by Rs13.—MA