The Karachi wholesale commodity markets last week showed either-way price movement as most of the essential items finished on a divergent note amid active bouts of buying and selling.

The main centre of activity remained the rice sector where Irri varieties showed violent price movements followed by the reports of arrival of new crop from Sindh. Irri varieties were the worst-hit owing to persistent selling.

The notable feature was that after a gap of one year the Punjab Irri-9 variety came on the trading board and was quoted at Rs1,700 to 1,800 per 100kg bag.

However, there were few exceptions as prices of some rose modestly, while others fell on the selling at higher levels but the on-balance trend remained firm.

Dealers said the arrival of commodities from the upcountry markets remained fairly steady which in turn did not allow further increase in the prices of essential items. Moreover, the wholesalers also stayed away and did not buy at higher rates as they create selling problem at the retailers end.

Unlike the previous week, demand from the Punjab traders which pushed the prices sharply higher was not that aggressive and did not allow further increase, they added.

Some industrial raw materials, however, remained in active demand but as the supplies were enough to meet the ready demand the prices generally fell from the early high levels, they said.

Market sources said the new rice crop is arriving on the market on a modest scale and are expected to pick up by the end of the this or early next month, which could pave the way for the resumption of export.

But they said some leading private exporters have already made forward contracts for the new crop Irri type and shipments are expected to be made by late next month or in early November.

Wheat prices showed a modest decline of Rs5 in sympathy with sugar followed by the reports of fall in arrivals from the Sindh markets and a reported increase in the mill demand.

Sugar consolidated its previous gains, while gur and desi sugar were marked down by Rs50 to 100 on selling by the local stockists followed by the reports of new crop arrivals.

Rice sector showed firm trend on the reports of fresh forward export agreements with foreign importers. Some private sector exporters who still have stray stocks of the old crop are selling it at higher rates to foreign buyers.

Prices of sela basmati rose by Rs250 to 300 per bag, while kernal fell by Rs50 to 100. Irri varieties showed fresh fall of Rs50 to 100 per bag. Basmati, however, posted a gain of Rs50 on active local demand.

The biggest rise of Rs700 to 900 was recorded in basmati broken on the reports of higher export demand and pressure on supplies. Irri-6 rose by Rs10.

Pulses showed mixed trend. Gram dal and beetle rose by Rs50 to 180, masoor dal suffering a fall of Rs100, while all other varieties were traded at the last levels amid active trading.

There was no pressure on the ready supplies owing to steady arrivals from the upcountry markets, the increase in the prices of some was due to the active local demand, dealers said.

Cereals on the other hand depicted divergent trend amid alternate bouts of buying and selling. While maize and jowar were firmly held at the last levels, bajra came in for fresh selling and was marked down by Rs20 to 25.

Guar remained under pressure and was quoted lower by Rs85 on selling by the local stockists followed by the reports of a healthy new crop due in late October.

Oilseed sector showed easy trend amid active trading followed by the reports of steady new crop arrivals of cottonseed from the Sindh ginneries. The prices fell so did the rapeseed Dadu variety, on the reports of weak oilcake market by Rs15 to 20.

Til and castorseed on the other hand came in for fresh selling and were marked down by Rs25 to 100 followed by the reports of slow export demand and steady arrivals.

Oilcakes displayed mixed trend while cottonseed cakes rose by Rs10 to 15. Rapeseed cakes suffered a fall of Rs5 amid active trading.—M.A