TRADING on the Karachi wholesale commodity markets was relatively slow during the preceding week as commercial houses most of the time kept to sidelines anticipating a fall in prices in the absence of strong demand.

But after mid-week it suddenly picked up as a section of the brokers indulged in alternate bouts of buying amid reports of steady arrivals of some of the commodities from Sindh markets, dealers said.

The notable feature was that among essentials, wheat prices rose by Rs30 per bag, while that of sugar fell by Rs50, signaling the arrival of new produce from Sindh mills, they said.

Floor brokers said that despite higher freight rates, as larger section of cargo haulers remained busy lifting sacrificial animals from upcountry to the city, transportation of some of the essential commodities were maintained on the higher side.

But on the other hand prices of some varieties of pluses were quoted lower as local stockists opted for selling them on the open market as their efforts to keep prices on the higher side had failed, they added.

Arrivals of new rice crop from Sindh markets were on the higher side and in normal conditions should have pushed prices down, but active short-covering by private sector exporters against their forward deals did not allow any fall in most of the types.

On the other hand some Irri types showed fresh rise as the export demand outweighed local supplies.

Moreover, after midweek arrivals from Sindh markets also slowed down, which caused price spiral later.

Fine varieties of basmati, including sela and kernel, were traded around previous levels as demand for both remained on the lower side owing to higher prices and beyond the parity level of exporters.

There was a relative quiet on the sugar front, but prices remained under pressure and fell from the previous levels as arrivals of new produce were said to be on the higher side despite the fact that mills were not inclined to push them in a bigger way to keep prices around the current levels, dealers said.

Other essential items, notably wheat and pulses showed either-way and most of the types were quoted around previous levels amid slow trading.

Much of the activity on the rice sector remained confined to Irri types, which rose by Rs5 to Rs20 for Irri-6 and fell by Rs200 for Irri-9 on selling by local commercial houses after steady new crop arrivals. Irri broken also rose by Rs25.

But on the other hand some industrial raw materials came in for active profit-selling on reports of steady arrivals from upcountry markets and some local stockists shed their extra weight fearing further fall in their prices, they added.

Guarseed was mainly among them as new crop arrivals made their debut on the local market at much lower rates.

Sindh type, on the other hand, fell by Rs100 per bag, while the Punjab variety remained pegged at the last levels, they said.

Among pluses, gram whole and masoor remained under pressure owing to reported oversupply and were quoted lower by Rs25 to Rs50, while others were quoted unchanged.

Cereal sector also came in for strong support followed by reports of slow arrivals from Sindh markets and rose by Rs20 to Rs100 for maize, jowar and bajra. Barley was traded unchanged.

Oilseed sector showed divergent trend.

While cottonseed rose, rapeseed varieties were marked down by Rs50 to Rs125 per 40 kg on selling triggered by reports of new crop arrivals from Sindh markets.

Oilcakes ruled unchanged for rapeseed cakes, while cottonseed cakes rose by Rs30 per bag.—M.A