The wholesale Karachi commodity markets showed easy trend last week, as the prices of essential items generally fell, followed by the reports of steady arrivals and the slack demand from Punjab dealers.

The market decline led pulses, which have been in strong demand for the last couple of weeks, and fell sharply under the lead of gram and gram dal.

Arrivals of some of the essential items, notably wheat and sugar were reported to be fairly steady but those from foreign sources were well below the average daily-demand.

However, reports from the export front were fairly encouraging, notably in regard to rice and reports of fresh deals with some leading African and Gulf importers, both for IRRI and basmati varieties.

But earlier tight ready position, because of slow arrivals from the overseas markets pushed the prices of pulse sharply higher as demand could not be fully met.

Dealers claim there were reports circulating in the market that some of the leading importers who are holding back stocks to create artificial shortage in a bid to push prices further higher sold at the fag-end of the week.

While price of pulses fell because of easy supply position those of rice including basmati, amid reports that the private sector exporters are in the market and are covering their consignments to physically ship them well in time, they added.

There was, however, a relative quiet on the sugar front as prices remained stable around the previous levels as millers are claimed to have a judicious balance between the supply and the demand in a bid not to allow major changes despite larger unsold stock of over half a million tons.

But wheat was an exception as prices fell despite reports of fresh export deals with Egypt and some other countries and hope that the bulk of exportable surplus of old crop will be sold before the arrival of the new crop sometimes in late April or early May.

Dealers attributed the fall in wheat prices to reports of steady new crop arrivals from the lower Sindh cotton belt where sowing of the crop is done early as compared to the rest of the country.

Basmati varieties on the other hand maintained their firm trend for the third week in a row, reflecting strong presence of foreign support and reports of fresh export deals.

In sympathy, the IRRI varieties also rose modestly after the revival of the demand from export houses. Slow arrivals were another aiding factor.

Prices of basmati rose further by Rs50 per bag, while sela type attracted modest support at the last levels amid active trading, down by the same amount.

The IRRI Punjab type was again not quoted, while the IRRI-9 posted a gain of Rs50 on active local demand, IRRI-6 broken rose by Rs17. The IRRI broken also came in for strong support from the exporters and was marked up by Rs70 per bag of 100kg.

Sugar both white and desi did not show much change and were held at the last levels and so did gur for the want of support.

Pluses showed easy trend. While urad, gram whole and gram dal, moong and peas suffered fresh decline of Rs55 to 150 per bag on selling, the largest fall of Rs250 to 275 being in beetle, tuver was the only exception, which rose by Rs63, with all other types remained pegged at the last close.

Wheat showed easy trend as prices fell further by Rs20 for both old and new crop on selling prompted by local dealers and stockists.

Cereals came in for active selling at the higher levels and prices of Jowar, Bajra and barley fell by Rs10 to 100, maize being an exception finishing at the previous level.

Guar came in for stray support from the local crushers and was marked up by Rs10 amid light trading.

Oilseed sector showed quietly mixed trend as the prices of rapeseed fell further on active selling followed by the reports of steady new crop arrivals from Sindh markets and oil cakes sector. All the types suffered fall ranging from Rs15 to 25, while cottonseed were held unchanged. And so did til and castorseed, which consolidated the previous week’s gains.

Oilcakes remained under pressure partly to weak rapeseed and oil market and partly to slack mill demand. As a result, prices of both rapeseed and cottonseed cakes were marked down Rs3 to 5 in sympathy with rapeseed.—M.A