THE Karachi wholesale commodity markets maintained their upward trend during the preceding week owing to fall in arrivals from the upcountry trading centres because of monsoon rain.

Arrival of essential commodities were disrupted as dealers did not take risk to receive wet consignments as rain continued in the entire Sindh, in some of the centres heavy downpour, brokers said.

The fall in fresh arrivals from the interior further accentuated the supply position followed by a fresh price flare-up on some of the counters, they added.

The other factor supporting the price flare-up was shortage of floating stock on some of the sectors partly because of higher exports and a considerable pressure on local stocks.

Rice sector was leading among them as unsold stocks both with the commercial houses and private sector stockists have reportedly been exhausted, causing price increase.

A record export of the commodity well above $1 billion during the current season has created local shortage and in turn higher prices, dealers said.

The new crop of IRRI types is due during the next month from some of the rice growing areas of Sindh but it is not clear whether it will ease prices or not, they added.

Pulses followed them as importers and local stockists kept a tight control on the selling prices at the retailers’ end and release stocks of the imported stuff well below the daily demand of the consumers. Prices of some of them rose further.

Imports of sugar continued as another ship carrying 30,000 tons of the commodity arrived during the week but reports from the wholesale market said prices of the sweetener remained on the higher side at varied rates from area to area.

Wheat also maintained its upward drive for identical reasons but the important among them was a considerable demand from the millers, some of whom are said to be building up long positions amid fears of fresh rise in prices, market sources said.

Most of the essential items closed the week on a higher note as pressure on supplies owing to rain and lower arrivals from the upcountry markets could not satisfy the local demand and the consequent price flare-up.

Pulses led the advance under the lead gram whole, gram dal peas, which rose by Rs35 to Rs125, largest rise of Rs200 per bag being in moong variety. Other types were traded at the last levels.

Wheat followed them although the increase of Rs5 was modest but dealers reported strong mill demand coupled with stray buying by the commercial houses and sundry traders.

Trading on the rice sector remained relatively slow owing reported shortage of ready stocks partly because of holding back of stocks by some of the leading brokerage houses and partly to slow arrivals from the Sindh markets.

Barring a modest rise of Rs10 in IRRI-6, all other varieties including kernel and sela type of fine basmati were traded at the previous level despite reports of fresh forward sales to some European countries.

Other essential items were mostly traded on the higher side despite steady imports against forward deals signed some weeks earlier. But prices fluctuated in line with demand.

Cereals lacked normal buying interest and were held unchanged for bajra, maize, jowar and some others including barley.

Among the major industrial items, guarseed rose by Rs50 despite rain in the major growing areas of Sindh and prospects of a higher crop after successive short crops for the last three seasons.

Prices are expected to come down after the new crop arrives on the market possibly by November or early December, dealers said.

Oilseed sector on the other hand showed mixed trend. While cottonseed remained static around the previous levels despite modest new crop arrivals from the Sindh ginneries, rapeseed rose by Rs20 to Rs30 for Nawabshah type, while Dadu variety was quoted lower by Rs25 on selling by a local dealer.

Major oilseed including til, castorseed and others lacked normal export demand and were held unchanged at the previous levels amid slow trading.

Cottonseed cakes on the other hand rose further owing to short supply and rose by another Rs15, while rapeseed cakes were held unchanged despite pressure on ready supplies.—M.A.