THE Karachi wholesale commodity market was quiet last week as leading traders and brokers held on to their positions without indulging in speculative activity.

The slowdown was attributed to the massive earthquake that hit the Northern Areas on October 8 resulting in heavy casualties. Leading brokerage houses and commercial traders remained busy in relief work and did not opt for daily trading.

Trading activity was expected to get normal possibly by next week as by that time normalcy may return to ready market, they said.

Price changes were modest and confined to few essential counters. However, there was no speculative increase in any essential item despite the pressure on supplies from upcountry markets as the bulk of cargo haulers remained busy in relief operations in quake areas, market sources said.

Despite a considerable decline in arrivals of essential items from the upcountry trading centres, prices remained stable.

Industrial activity was affected by more than one ways in the backdrop of quake but the wheel of the industry kept moving to maintain the production levels, notably of export items, brokers said.

Prices of some industrial raw materials increased modestly due to a considerable decline in arrivals and pressure on ready supplies on wholesale grain markets, notably in guar seeds.

Physical shipments of rice for export purpose stayed on the higher side as a loader was busy in stuffing 13,500 tons of the commodity.

New rice crop, notably IRRI variety arrived in the local market on a modest-scale and was expected to get into full swing after the Eid holidays as by that time harvesting in major areas of Sindh and Punjab would resume.

Rice stock was fairly good and the country may achieve an exportable surplus worth one billion dollars. Some private sector exporters were signing forward deals with countries like Iran and China, said the market sources.

In physical trading, wheat was quoted further up despite the steady release of quota stocks to mills over the week.

Wheat was quoted higher by Rs20 to 30 per bag for the second week in a row. Commercial importers did not participate in market operations apparently seeking fresh price rise, dealers said.

Pulses took the cue, although prices stabilized at the fag-end and were quoted unchanged. Beetle and tuver were exceptions and rose by Rs50 to 75, while the latter fell by Rs100 per bag.

Despite steady new crop arrivals from the Sindh markets, rice remained stable barring basmati which was marked up by Rs150 per bag on reports of high export demand. IRRI varieties were traded at last levels amid active new crop arrivals.

There was no change in the wholesale sugar prices, both white and desi as stockholders continued to dictate the price line. Prices were expected to ease modestly during the next couple of days as the government had directed the TCP to unload its entire stock of the commodity in the open market through tenders. It already had invited bids for 50,000 tons by early next week.

But the market sources said that the prices were expected to ease once the Sindh mills resumed new crushing season and the new crop stocks arrived, possibly by the middle of next month.

Some Punjab sugar mills owners too, indulged in raw sugar import which was expected to reach the market after refining i.e., before the new crushing season began, they said.

On industrial raw material front, guar seed rose further by Rs25 to 50 per bag after last two weeks’ persistent fall followed by the reports of a good new crop owing to timely rain.

Among the cereals, bajra again rose after falling sharply in the previous week as supply position showed considerable improvement — thanks to steady arrivals. Prices were quoted higher by Rs50 to 100 per bag.

Barring castorseed and til, which were marked down by Rs25 to 75 per 40kg on selling, other major seeds, including the cottonseed and rapeseed were firmly held at previous levels amid active trading.

Oilcakes came in for active speculative buying on reports of short supply and rose by Rs22 to 42 for cottonseed cakes, while rapeseed cakes were held unchanged at last levels.—M.A.