The wholesale commodity markets lacked normal buying interest last week despite reported pressure on supplies from the upcountry trading centres. Leading brokers and commercial traders did not hold their unsold stocks but maintained regular supplies to retail selling outlets.

There was pressure as the majority of cargo haulers were busy in transporting the relief goods to quake-hit Northern Areas. This consequently hiked freight rates, dealers said.

Arrivals from the upcountry markets were slow but it went to the credit of local wholesalers for maintaining the prices at the pre-quake levels despite a good bit of buying of essentials by the philanthropists for quake victims, they said.

Few items fell modestly under the lead of wheat and some pulses as supplies, both from local and upcountry markets stayed well above the daily demand, brokers said. On export front, physical shipment of rice against forward deals was judiciously maintained as a consignment sailed out after loading 14,000 tons. Another arrived at the fag end of the week to load an identical amount, they said.

Prices of both, new crop IRRI which was in the process of being shipped, and basmati were fairly stable despite reports of steady new crop arrivals from the Sindh markets.

However, there wasn’t any sign of easing of sugar prices despite bigger imports and a release of 0.350 million tons by the TCP through the Utility Stores Corporation. Local mills also held an unsold stock of half a million tons from the previous crop to sell it at will, said the market sources.

All eyes were now focused on the new crop crushing expected to begin by November 15. Local dealers said the current price level was expected to be maintained as reports of a short new crop were trickling down in the market.

They said that the crushing season could be delayed further due to the reluctance of growers to sell cane to millers below Rs60 per maund as against the officially announced Rs48.

Any further delay in crushing could increase retail rates after Eid holidays as the arrival of new crop will not reach the market by December, they said. Market source said that some Punjab crushers who had imported raw commodity were expected to resume refining soon after holidays. Some expected a modest fall in prices once the foreign stuff found way into the wholesale market. Ready offtake, notably on essential counters was slow because of a comfortable position as there were modest buying only to fill in the supply gaps instead of building up long positions.

There was no panic buying on any counter thus bringing an ease to the prices of some essential items in the absence of a strong demand.

Wheat, though suffered a fresh fall led the essential items. Supplies, both from the local markets and official sources were steady which in turn pulled the prices further down by Rs10.

Some pulses varieties followed it with the biggest decline of Rs65 to 190 per bag was noted in moong varieties. Beetle fell by Rs5 with other types holding on to their last levels amid dull trading.

Rice sector showed firm trend despite steady new crop arrivals. Prices remained stable around previous levels both for fine types of basmati and IRRI. Broken IRRI tended higher by Rs20 to 50 per bag following active buying by the private sector exporters.

Sugar followed these as wholesale prices of both desi and white sugar were unchanged. At retail level prices were quoted higher.

Some brokers were expecting a decline in the wholesale prices once the new crop began arriving in the market, possibly by the first week of December.

With the exception of maize which posted a fresh rise of Rs25 on covering purchases made by the industrial users, jowar, barley, and bajra were traded at previous levels - thanks to steady arrivals from the upcountry markets.

Most of the industrial raw materials including guar seeds lacked normal trading interest owing to higher prices. Whether or not the prices would fall once the new crop makes way into local markets by late next month was unclear as reports of a short crop in Sindh still persist.

Oilseed sector showed mixed trend. Prices of castorseed and til were down by Rs25 to 50 per 40kg. Major oilseeds including cottonseed and rapeseed were quoted unchanged at last levels followed by reports of a comfortable supply position.

Unlike previous week, prices of both rapeseed and cottonseed cakes posted gains ranging from Rs3 to 20 followed by reports of a pressure on supplies and firm oil markets.—M.A.