PRICES of essential items on the wholesale commodity markets rose further last week as pressure on ready supplies continued partly because of slow arrivals from upcountry markets and partly to reports of holding back of stocks by local commercial houses.

Price flare-up was confined mainly to rice and pulses sectors as wholesalers continued to build up long positions fearing fresh increase as pressure on supplies is expected to continue.

Physical business, therefore, was said to be on the lower side of the weekly average as retailers and wholesalers stayed on the sidelines most of the time hoping fall in prices.

Arrival of some commodities from upcountry markets showed a modest improvement but they failed to push prices down as leading stock holders maintained firm hold on demand and supply, market sources said.

They said that unlike previous weeks, the market advance was led by the pulses sector on reports of a considerable decline in imports, while local demand was said to be on the higher side.

“Retailers, who stayed on sidelines for the last two weeks amid hopes that prices would fall after supply position improves, were back in the market to make up their short supply and the consequent rise in prices,” they said.

But some others said import of some type of pluses during the last couple of weeks were on the lower side, which, in turn, caused the current price flare-up.

Other essential items, mainly wheat, remained in demand both from mills and local stockists as despite arrival of fresh imported consignments from various sources, pressure on supplies did not ease, they added.

Sugar followed them as crushers did not resume the new season as promised by them on Nov 1, and consequently, supplies were far behind local demand causing a fresh price flare-up.

The latest reports indicate that millers will resume the crushing season from Nov 20, and local stuff is expected to reach the market by the first week December, said a broker. But he was not sure whether or not prices would fall from the current levels as the new crop arrivals from the mills were expected to be regulated as millers would try to keep prices at current levels, he added.

Unlike previous weeks when there was a run on industrial raw materials, prices remained stable followed by reports of steady arrivals from upcountry markets.

The market advance was led by the rice sector followed by reports of higher export and physical shipments to various countries against forward deals. Unlike previous weeks, much of the price increase was confined to fine types basmati, notably kernel, which were quoted higher by Rs100 to Rs200 per bag of 100 kg.

Irri-6, however, was an exception which came in for modest selling partly on reports of steady new crop arrivals from Sindh markets and partly to slack export demand.

Pulses followed them, which posted gains ranging from Rs150 to Rs200 on reports of short supply and larger booking by Punjab dealers. Urad, masoor whole and masoor pulse were leading among those whose prices were quoted higher.

Sugar prices also rose from Rs50 to Rs200 per bag despite reports that some of the mills had resumed the crushing season. But reports that the new crop arrivals would be further delayed pushed the prices higher.

Gur and desi sugar followed them on an identical ground and were quoted higher by Rs25 to Rs200 per bag amid active trading but modest ready off take.

Among cereals, maize and jowar prices were quoted higher by Rs50 and Rs100 on reports of short supply followed by slow arrivals from upcountry markets. Bajra was quoted lower on late selling.

Oilseeds sector showed bullish trend under the lead of rapeseed whose price showed fresh increase ranging from Rs125 to Rs150 per 40 kg, partly because of higher oil prices and partly to a short supply from Sindh markets.

Til followed them on reports of revival of export demand and was quoted higher by Rs200 but on the other hand castorseed was firmly held at the last levels amid slack demand by local crushers.

Cottonseed, on the other hand, was quoted modestly lower on selling prompted by steady new crop arrivals and weak oilcake market.

Oilcakes again showed divergent trend amid active trading. While rapeseed cakes were quoted higher in sympathy with rapeseed, cottonseed cakes were marked further lower by Rs5 to Rs10 on oversupply.—M.A.