Sugar on the Karachi wholesale markets remained stable last week with progressively rising arrival and a comfortable ready position.

The market sources said local stockists and agents of the mills were reluctant sellers even at the rising prices. They were hoping further increase in prices once the government started purchasing the commodity to built a buffer stock up of 0.1 million tonnes.

The other contributory bullish factor was the statement by millowners about the new crushing season. The season normally starts late in October or early November but the millers intend to begin it sometimes in December after clearing the backlog of the unsold stock, they said.

According to the PSMA, its members still hold an unsold stock of a million tonnes which could push new crop prices up, they said.

The unsold sugar stocks may remain a deciding factor behind the current price flare-up in coming weeks too, if the official intervention was further delayed, they said.

After the initial sharp rise, sugar prices finally finished with a modest increase of Rs5 owing to the increase in arrival, dealers said.

In sympathy with firm sugar market, other essential items as well, remained stable under the lead of pulses and wheat which rose modestly followed by the reports of pressure on supplies in some areas.

Reports of a possible shortage of the commodity in the Frontier and Balochistan, so far, were not considered the bullish market factors, dealers said.

Rice sector ruled easy despite the resumption of export of the new crop. Steady arrivals of the new crop from Sindh market depressed the ready rates modestly. Prices of Irri-6, Irri broken and Basmati suffered decline ranging from Rs5 to 50, while all other varieties including sela and kernal Basmati were traded at the previous levels.

Other essential commodities, notably pulses also showed a sympathetic decline followed by the reports of easy ready supplies. Prices of beetle rose by Rs50, while urad and gram dal suffered fall ranging from Rs25 to 40, with all other varieties remained pegged at the last levels.

Among major industrial raw materials, guar again attracted active selling amid fears of further decline in the prices after the new crop arrives late next month. Processors were not making fresh buying anticipating further decline in prices.

At one stage, prices fell below Rs1,000 per bag mark at Rs950 but the mid-week mill buying again pushed it higher by Rs75. The net fall over the week was of the same amount.

Cereals on the other hand depicted mixed trend amid alternate bouts of buying and selling. While maize fell by Rs20 to 25 on selling, followed by the reports of steady new crop arrivals, jowar and barley were held unchanged at the last levels. But on the other hand bajra came in for fresh support at lower levels after several weeks of declining trend and was marked up by Rs25 to 50 amid active trading followed by the reports of fall in arrivals from the Sindh markets.

Oilseed sector remained steady amid active trading followed by the reports of fall in new crop arrivals of cottonseed from the Sindh ginneries. Prices remained stable owing to firm oil and cakes markets.

Prices of both cottonseed and rapeseed were firmly held at the last close amid active two-way trading. Arrivals from Sindh markets were steady.

Til was traded at the last levels and so did castorseed in the absence of strong demand from the private sector exporters and crushers. Arrivals of both from the upcountry markets were steady, which did not allow major change in prices.

Oilcakes showed easy trend as prices of both cottonseed and rapeseed cakes suffered fall ranging from Rs2 to 20, respectively followed by the reports of larger arrivals from the upcountry markets and the consequent local selling amid active trading.—M.A