Some essential items showed fresh increase in the Karachi wholesale commodity markets during the last week. This was followed by the reports of pressure on ready supplies due to a considerable decline in arrivals from the upcountry markets.

Wheat and some types of pulses were notable, but other essentials were traded lower under the lead of pulses and cereals.

However, there was no evidence of pre-Ramazan price hike as the holy month is still two weeks away. The supply and demand factors apparently guided the price line, notably on essential counters.

Much of the price changes, were noted in the pulses and wheat sectors while, there was a relative calm on the sugar front followed by the reports of the government directive to millers to resume crushing operations by November 1.

Already facing the problem of a large carryover stocks, the Pakistan Sugar Mills Association (PSMA) high-ups were planning to resume operations by a month late on December 1, hoping that the bulk of the unsold stock may be consumed during the holy month.

However, sugar prices remained stable at the previous levels and did not show further increase as was speculated by some dealers. There were no reports of holding back of stocks by the millers as most of them were inclined to get out of the production glut well before the start of the new season.

There was no word from the PSMA members over the official directive although it was unclear whether or not they will abide by it. There official reaction could have either-way market impact on the prices, dealers said.

Other essential items, notably wheat remained in strong demand both from the millers and the local consumers and maintained firm outlook, although there was no pressure on ready supplies. The net rise over the week was Rs30 per bag.

Rice sector on the other hand reacted bullishly to reports of pest attack in some of the upper Sindh rice belt. The demand from the private sector exporters to cover their forward sales of the new crop was another aiding positive factor, they said.

Basmati and fine varieties finished at the previous levels followed by the reports of pest attack on the standing crop in areas of the upper Sindh rice belt, dealers said. Irri-broken type was the only exception, which rose by Rs20, while all other varieties were traded at the previous levels. Sugar prices also remained stable and were held unchanged at the last levels despite official directive to resume the new crushing season from November 1. Gur was the only exception, which fell by Rs100 on the selling prompted by new crop arrivals.

Pulses on the other hand showed mixed trend amid alternate bouts of buying and selling. Beetle and gram dal were quoted higher by Rs25, while urad, peas, tuver and gram whole suffered fall ranging from Rs12.50 to 150,largest decline of Rs225 being in the peas.

Guar prices did not show much change in the absence of strong demand from the mills and were firmly held at the last levels amid slow trading.

Cereals on the other hand again showed easy trend amid slack ready demand. Both bajra and maize remained under pressure followed by the selling caused by steady new crop arrivals and suffered fall ranging from Rs10 to 20, jowar was firmly held at the previous levels.

Barley showed quietly steady trend as its prices remained pegged at the last levels as there was no pressure on supplies.

Oilseed sector again showed firm trend followed by the reports of fall in new crop arrivals of cottonseed from the Sindh ginneries. Prices remained stable owing to active local demand.

Prices of all types of rapeseed and til were quoted unchanged at the last levels, while castorseed came in for fresh support from the exporters and rose by Rs25.

On the oilcakes counter, cottonseed cakes came in for strong support followed by the reports of steep increase in cotton prices and reports of a short crop. The net rise over the week was of Rs45 to 50 per 40kg. Rapessed cakes also rose by Rs10 in sympathy.—M.A