WHEAT prices, on the Karachi wholesale market last week, eased on account of improved supplies as arrivals from the upcountry centres were considerably consistent.

Another factor was the talk of an additional half million tons to build the ready stock position up, in case prices rose from their current levels.

What seemed to have triggered the selling by stockists were the reports of opening of the letters of credit for 50,000 tons of the Russian commodity by the local millers, market sources said.

Unlike the previous season, when imports were delayed to make up for the local crop shortfall, the government took a timely step to forestall the flare-up.

The commodity was being imported both on private and official accounts, notably from Russia, Ukraine, and other countries at around $145 to $158 per ton f.o.b. Karachi, they said.

There were indications that prices of wheat may fall further as the imported stuff was expected to reach the market within next couple of weeks, they said. An expected fall in mill demand from the ready market will be another negative factor for stockists, they added.

Wheat, over the week, fell ranging from Rs15 to 20 per bag but was still quoted high as compared to previous season.

There was not a negative impact on the sugar front despite steady imports as prices, both in wholesale and retail, remained high at around Rs25 and 30 per kg, dealers said.

They claimed that bulk of the commodity, both local and imported, was making ways into Afghanistan through various sources, including the cross-border trade. Imported raw sugar will make a debut in the market in next couple of weeks but whether or not it will pull down the prices was anybody’s guess.

On other essential counters, pulses remained stable followed by reports of the Customs releasing in part the held-up consignments on receipt of the relevant withholding tax SRO. The tax was reduced to two from six per cent, brokers said.

Price movements were extremely narrow owing to the steady arrivals from upcountry market and the release of stocks by importers, following the WT cut.

Pulses, therefore, remained dormant as supply matched ready demand after the tax cut. Ural, however, was an exception which rose by Rs30 per bag, while other varieties were traded at previous levels.

Among other essential, wheat came in for renewed selling on the reports of opening of the LCs by millers and commercial importers.

Reports that some consignments, from Russia and Ukraine, were due next month triggered selling by the stockists who held long positions to sell it at higher prices.

Prices of both new and old varieties including the imported stuff were softened by Rs20. Dealers predicted fresh fall in coming weeks but flour prices did not fall in sympathy, dealers said.

Talks of fresh imports, excluding from India, failed in pulling the prices down as supplies fell short of the retailer-demand.

According to the Pakistan Sugar Mills Association (PSMA) figures, its constituent members up to July 15 held an unsold stock of a million plus, confidently holding the price line, brokers said.

Quieter conditions were again witnessed where prices of all varieties remained stable amid light ready offtake. Some private sector exporters, however, maintained their shipment schedules against the forward deals.

The new crop will take three months to reach market from lower Sindh rice belt, while in some Punjab areas sowing was still going on.

Cereals, on the other hand, showed mixed trend, while maize rose by Rs25. Bajra and guar suffered a fall ranging from Rs25 to 100 per bag on active selling. Other major cereals were traded at last levels under the lead of jowar and barley.

Barring a fresh fall of Rs50 in til in the absence of strong demand and larger new crop arrivals, oilseed sector again ruled steady as prices of cottonseed and rapeseed were held unchanged.

Oilcakes ruled divergent, while rapeseed cakes rose fractionally. Cottonseed cakes were marked down by Rs10 on selling by the ginners.—M.A.