PRICES of some essential items on the Karachi wholesale markets increased further during the previous week but reports of midweek steady arrivals from upcountry market contained fresh speculative increase.

The disturbing feature of the week was that prices of some cereals and major industrial raw materials also increased with some essential items’ prices followed by reports of pressure on supplies after having ruled stable for the last couple of months.

The future commodity price outlook appears to be a bit bullish owing partly to regulated arrivals from upcountry and partly to holding back of stocks by some leading dealers, market sources said.

As the commodity trade was in the grip of speculative forces and larger part of the supplies was under their control, it was not that easy to push prices down from the current inflated levels, they said.

The notable feature of the week was that for the second week wheat prices eased as supply position improved modestly after local stockists sold in part their long positions ahead of arrival of imported stuff, market sources said.

On the other hand, sugar prices rose from the current level followed by reports that sugar mills had not resumed crushing from Nov 1, as decided earlier. The crushing operation was now expected to resume from Nov 15.

The trading activity was almost normal as dealers and commercial houses did not make fresh covering purchases followed by reports of steady arrivals from interior markets.

The significant feature of the week was that oilseed prices were contained, including rapeseed, which had soared to all-time high last week on reports of pressure on supplies mainly from Sindh markets, dealers said.

Prices of some types, mainly from Dadu, were marked down sharply on selling by local dealers followed by reports of steady arrivals from Sindh markets. Other varieties from Natasha and Mirpurkhas, on the other hand, were held firmly around previous levels as pressure on supplies continued, so did oil and oilcakes markets, dealers said.

The market advance was led by the rice sector on active covering purchases by exporters against their forward sales. Prices of Irri types and basmati were quoted higher by Rs150 to Rs200 per bag.

Wheat followed them, up by Rs25 per bag. On the other hand, pulses showed divergent trend. Prices of moong, urad and other varieties fell by Rs50 to Rs150 per bag, while some other types were quoted modestly higher, although ready off-take was light.

Sugar prices eased from last week’s level by Rs70 despite expected delay in arrival of new crop for couple of weeks as mills had delayed the crushing season by another week. Meanwhile gur and desi sugar were quoted lower on selling followed by reports of arrival of new crop.

Among cereals, maize, bajra, jowar and barley came in for strong support after several weeks of sluggishness and were quoted higher by Rs50 to Rs250 per bag, major gainer being maize.

The oilseed sector lacked normal support owing partly to higher prices and as a result prices of some type of rapeseed eased by Rs5 to Rs15, cottonseed were quoted higher by Rs20 to Rs25 per 40 kg. Castor seed, til and groundnut were mostly traded at previous levels as supplies matched the local demand.

Oilcakes ruled easy for rapeseed cakes, while cottonseed cakes tended further higher on active support extended by crushers. —M.A.