TRADING activity on the Karachi wholesale commodity markets last week remained relatively slow as the mid-week heavy rain created delivery problems for retailers.

Arrivals from upcountry markets, notably from Sindh, were on the lower side followed by fresh rain but dried up after mid-week heavy rains.

Floor brokers said the current spell was untimely and may cause damage to standing cotton and rice crops, which are at the harvesting stage.

Rice crop is in the maturing stage in upper Sindh rice belt. The rain would damage its quality and cause delay in its harvesting as the fields are wet, they added.

Already, rice crop in Sindh has been damaged by floods in Balochistan and its spill over to the Sindh rice crop area, they said. Prices of rice could rise further on supply fears. Moreover, export target of the crop may not be met as higher local prices could make the commodity more expensive, dealers said.

Prices of rice varieties IRRI and basmati are unchanged at all-time high levels followed by reports that stocks of the old crop had exhausted, they said.

The normal activity is expected to resume during the next couple of sessions after weather conditions improve and arrivals from interior markets get pace to fill in the supply gaps.

Market sources said prices of some essential commodities may rise further as pressure on supplies would continue as commercial houses would try to apply a squeeze on ready positions.

Much of the activity remained confined to essentials’ counters at the fag-end of the trading week and as a result prices tended further higher after a relative quiet during the last couple of weeks, they added.

Prices will also show sympathetic rise on other counters under the lead of pulses and other essentials as the supply position is not likely to improve owing to post-rain problems.

Pulses sector again led the market advance owing to pressure on ready supplies partly because of a considerable fall in arrivals from upcountry markets owing to rain and partly to lower release of stocks by importers.

Much of the activity remained confined to gram dal and masoor sector where prices of gram dal were quoted higher by Rs450 per bag, while that of masoor and masoor dal imported stuff were traded higher by Rs.200 to Rs250 per bag. Urad followed them, up by Rs125 and so did peas, while others were traded at previous levels in the absence of demand from retailers and some wholesalers. Gram whole was marked down by Rs10.

Among other essentials, wheat remained in demand both from mills and retail sector amid reports of slow arrivals from upcountry markets and was quoted higher by Rs35 per bag.

But, on the other hand, prices of sugar suffered decline ranging from Rs40 to Rs50 on selling by mills followed by reports of Ramazan package which includes sugar at a fixed rate.

Millers and stockists fearing further decline in prices sold part of their stocks held for Ramazan, which pushed prices further down amid active buying at the lower rates, dealers said.

Gur on the other rose by Rs200 per 40 kg on active demand from exporters, notably to Afghanistan via Quetta. Desi sugar was traded at the last levels.

Rice sector showed firm trend but prices of both IRRI and basmati were held unchanged at the last levels. IRRI-6 was and exception, which rose by Rs15 on stray local demand.Local dealers are awaiting arrival of new crop possibly early next month and said prices could be on the higher side followed by reports of damage to new crop because of flood.

Among industrial items, guar seed rose by Rs50 per bag of 100kg on revival of mill demand and reports of slow arrivals from the Sindh markets.

Cereals lacked normal support followed by reports of comfortable ready position. Prices of barley, maize, Bajra and jowar were quoted at previous levels amid slow ready offtake.

Barring a modest rise in castor seed price on reports of higher oil prices, other major oilseeds, including rapeseed and til, were held unchanged. But cottonseeds fell and rose followed by reports of steady new crop arrivals from the ginneries.

On the other hand cottonseed cakes remained under pressure and finished the week with a fall of Rs25 to Rs30, while rapeseed cakes were again held unchanged at the previous levels.—M.A.