Prices of essential items rose on the Karachi wholesale commodity markets last week, as the pent up demand on account of extended-Eid holidays figured prominently. This caused a price flare-up on some counters, while others experienced some eased conditions.

Arrivals from the upcountry market also remained suspended for about a week which left a negative impact on the ready position and consequent increase in the prices.

Dealers said although post-Eid holiday mood prevailed on some major wholesale commodity market early in the first few days, but the mid-week saw the revival of normal trading activity, notably on some essential counters.

However, they expect a substantial easing in the prices during next week as by that time arrivals from upcountry markets are expected to get normal.

Most of the increases were noted on the pulses sector as interruption in imports — because of the extended holiday — caused pressure on supplies and further pushed up the prices, they added.

Crisis-like conditions were again witnessed on the wheat front as reports of more increase in flour price, and closure of some mills kept the prices on higher side.

The market talk of import of half a million tonnes of the commodity from India or some other country did not have a bearish impact on the existing prices which stayed around Rs1,125 per bag.

Sugar on the other hand came in for stray selling followed by reports that a number of mills have resumed crushing operations, both in Sindh and Punjab sugar belts. Prices fell by Rs15 to 20 per bag.

Market sources reported stray arrivals of the new crop from Sindh mills which in turn put a negative impact on the price line. The Trading Corporation of Pakistan is in the market and will procure another 0.1 million tonnes from the mills of old crop.

Although, the government has directed sugar mills to resume the new crushing season from November 15, but most failed to meet the official deadline and resumed operations in the first week of the current month.

Wheat prices maintained their upward trend owing to pressure on supplies and as a result, prices were marked further higher by Rs40 per bag, despite the talk of import of half million tonnes from various sources to make up the local shortfall. However, the import duty waiver of 25 per cent is expected to lower prices in coming weeks.

On other essential counters, pulses showed mixed trend. While, beetle, peas and masoor dal posted gains ranging from Rs10 to 150 per bag on strong post-Eid demand. Gram dal, tuver and masoor varieties were marked down by Rs50 to 100.

Guar remained under pressure followed by reports of fresh new crop arrivals from the Sindh markets and finished further lower by Rs90 to 100 per bag on renewed selling.

Rice sector showed mixed trend owing to conflicting reports about the size of the crop. Broken Irri and basmati fell by Rs5 to 100, while kernal type closed with a smart gain of Rs100 with all other types remaining unchanged at the last levels.

Cereals showed mixed trend as prices of jowar and maize suffered fall ranging from Rs10 to 20, bajra rose by Rs25 to 50 amid active trading. Barley was also held unchanged.

Bajra on the other hand rose by Rs25 to 50 despite steady new crop arrivals owing to active ready demand by the retailers.

Oilseed sector ruled firm as rapeseed rose by Rs50 to 60 per 40kg owing to higher cakes and oil markets. Til followed it and rose by Rs150, followed by the reports of strong export demand and pressure on ready supplies.

Cottonseed, castorseed and groundnuts lacked normal trading interest and were held unchanged at last levels, amid slow ready offtake.

Oilcake prices rose on active demand despite steady arrivals owing to firm oil markets. Both, rapeseed and cottonseed cakes posted gains ranging from Rs5 to 10.—M.A