Active trading was witnessed on Karachi wholesale commodity markets during previous week as both the brokerage and commercial houses covered their positions at falling prices in some of the essential items, notably pluses.

Revival of the post-budget demand from the upcountry traders on imported pulses could be seen but was too small to forestal selling from the leading importers.

Though there were no changes in duties in the new budget — pulses are exempted from the sales tax — still the prices continued to fall as a section of leading importers cleared their long positions fearing further decline in prices, dealers said.

Moreover, reports of a considerable drop in local demand from the wholesalers and retailers also worked against the pre-budget price structure, they said.

Among other essentials wheat and sugar, however were, exceptions as both did not follow the market’s general trend and stayed firm amid active trading.

Wheat rose modestly on reports — which were officially denied — that certain quantity of the commodity may have to be imported from other countries to create a buffer stock for meeting any eventuality, and also to check a possible price flare-up before the new crop arrives in April next year, market sources said.

They said sugar — currently a victim of the production glut because of another bumper crop of 3.7 million tonnes — also resisted fresh decline followed by reports that the government intends to export 0.3 million tonnes of the commodity and has asked the millers to declare their surplus stocks.

The government will plan to dispose off the surplus commodity to foreign buyers either through international tenders or through on barter basis after exact figures are made available from member sugar mills, they said.

Basmati and kernal type of basmati were traded higher by Rs50, while sela type was held unchanged. Both Irri-6 Sindh and Irri-9 suffered modest decline ranging from Rs10 to 25 amid slow trading.

Dealers said the pressure on ready supplies and higher export orders were said to be chief factors behind the current rise in rice prices, and predicted further increase before the new crop arrives on the market sometime in August and September.

Pulses on the other hand depicted easy trend as only masoor showed gains to the extent of Rs100, while gram whole, gram dal, masoor whole, urad and peas came in for active selling and were quoted lower by Rs5 to 50.

Wheat came in for active mill buying followed by the reports of an imminent ban on exports because of a short crop. Arrivals from the upcountry markets also slowed down as dealers held on to their stock anticipating rise in prices during the coming weeks.

Cereals again showed firm trend followed by reports of slow arrivals from the upcountry markets. Prices of maize posted fall of Rs10 to 20, but jowar and bajra consolidated previous gains on reports of short supply.

Barley did not show much change despite active demand from the industrial sector by maintaining its previous levels amid active trading.

Guar prices remained under pressure followed by the reports of arrivals from upcountry markets and late week reports of rain in guar belt, which will facilitate the new crop sowing. It suffered a fresh setback of Rs65 per bag.

Oilseed sector showed quietly firm trend as prices of rapeseed came in for modest buying at the lower level in sympathy with weak oil market but managed to finish unchanged owing to firm cakes market. Castorseeds were actively traded at the last week’s levels amid reports of active support from exporters and local processors but finally held unchanged.

Til on the other hand came in for active support from local exporters and was quoted further higher by Rs50 to 100 per 40kg, which is claimed to be the highest level of its career so far.

Oilcakes again ruled mixed while cottonseed cakes suffered fresh fall of Rs3 in sympathy with weak seed market, rapeseed cakes rose by Rs22 amid strong demand.—M.A