PRICES of essential items on the Karachi wholesale commodity market remained stable last week as ready supplies were comfortable. There were not major changes on any counter.

But most notably, wheat and sugar stayed on higher side and did not fall further despite reports of steady arrivals from various sources.

The ready demand of retailers was low in the absence of fresh price rise. They only bridged the supply gaps here and there without indulging in speculative buying on any essential counter, brokers said.

Arrivals from the upcountry markets were a bit slow followed by the reports of holding back of stocks by dealers to keep the prices high, they said.

Reports origination from the Trading Corporation of Pakistan (TCP) stated that it would release 50,000 tons of imported sugar in open market through the Utility Stores Corporation for retailers. The reports did not influence the wholesale prices onto the lower side, they added.

Sugar trading was in control of the mill-owners and commercial traders as efforts of the TCP to pull the prices down failed, market sources said adding, it was pretty difficult to break the hold of stockists.

Both, the TCP and commercial importers had sold the imported stuff totalling about 0.4 million tons during the last couple of months to ease the prices at retail level. However, these stood around previous levels.

According to figures of the Pakistan Sugar Mills Association on unsold stock, its members still hold around 0.925 million tons which they release in part to refrain the prices dropping down sharply.

Among other essentials, wheat showed fractional either-way changes and stood firm around the previous week’s levels amid falling mill-demand and steady release of stocks from the official sources.

Rice remained unchanged despite reports of pressure on ready supplies and steady physical shipments against the forward deals.

Market sources said that the new crop was expected to arrive from some areas of Sindh by the middle of next month but its debut may not prove a big factor owing to modest arrivals.

The market advance was led by the pulses sector under the lead of mong, peas and others which rose by Rs25 to 100 but the largest rise of Rs375 per 100kg bag was noted in urad. Masoor dal of Indian origin was the only exception which fell by Rs100 on late weekend selling.

The market sources said that the prices were expected to ease by next week as a ship carrying 11,000 tons of the commodity had arrived which will find an outlet in wholesale market, possibly by next week.

Guar, used both as pulse and industrial raw material, also rose by Rs100 per bag amid reports of pressure on ready supplies and crop failure in Sindh for second consecutive year due to lack of rains after sowing, brokers said.

Other essential items did not show much change as supplies matched the ready demand by being quoted at previous levels under the lead of sugar, both white and desi.

Wheat was an exception which fractionally rose by Rs5 per bag but there was no pressure on ready supplies and the commodity was readily available in the open market, they said.

Both importers and local stockists were selling substantial quantities of the commodity at the current levels, although there were not any fears of short supply as the government had made arrangements of fresh imports.

Sugar on the other hand did not respond bearishly to reports of fresh import of the commodity totalling about 0.1 million tons and the announcement from the TCP that it will release another 50,000 tons of the commodity to ease the prices at retailer’s level.

But there was no change in sugar which stuck to the last two months’ level at around Rs24.00 and 2,480.00 per bag despite imports from India and some other countries.

Among the cereals, bajra came in for renewed selling following reports of steady new crop arrivals and were marked down by Rs150 to 200 per bag as leading stockists sold in haste.

Other leading cereals including barley, maize and jowar were traded at previous levels because of steady arrivals from the interior markets and falling consumer-demand.

Barring a decline of Rs25 per 40kg in castorseed due to the slackened export demand and weaker oil market, major oilseeds including cottonseed, rapeseed and til were traded at previous levels.

Cottonseed and rapeseed cakes followed them for the want of sufficient mill-buying and steady arrivals from the upcountry markets.—M.A.