Wheat prices last week resumed their upward drive on the Karachi wholesale commodity markets as reports of pressure on ready supplies owing to disruption in arrivals from the upcountry trading centres obliged millers to pay more..

Apart from tight ready position, the other factor which significantly contributed to the current price flare-up was reports of ban by the Punjab government on its inter-province movement, some dealers said.

The fresh increase in prices of wheat has a sympathetic positive impact on some other essential items whose prices also rose under the lead of some type of pulses.

After having risen to well above Rs1,800.oo per bag last month, prices had stabilised around Rs1,700.00 during the current month as supply position showed a modest improvement, dealers said.

They said the current price flare-up was apparently fuelled by interruption in arrival of wheat from the upcountry market owing to Eid holidays and reports of higher freight rates being demanded by the cargo haulers.

Market sources said prices of wheat are expected to again ease from the current higher levels after the arrivals of imported stuff by the next week as the TCP consignments from various sources are due by the next week.

They said according to shipping sources four vessels loaded with about 0.165 million tons of the commodity are expected to arrive at the local ports by the next week.

Prices are expected to easy after a part of the current consignments reaches the market or released to the flour mills according to their monthly quota, they said.

But some others said prices may show fractional changes here and there may be delay on the higher side as a good part of the imported stuff may find its way in to the outlets of the hoarders.

Barring some type of pluses, there was a relative quiet on the other essential counters and prices mostly stayed around the pre-Eid holiday levels under the lead of sugar and rice.

According to private sector exporters of rice, export demand is relatively slow despite another bumper crop because of higher local prices. Some consignments of IRRI are, however, are being shipped under the previous signed forward deals.

The market advance was led by some type of pulses under the lead of gram, moong and masoor, which were quoted higher by Rs200 to Rs250 per bag followed by some other essential items.

Owing to persistent increase in wheat prices, it was not quoted board as according to unofficial reports, its price has again touched the all time peak level of Rs2,000 per bag.

Among the other essentials, sugar white and desi type were quoted lower by Rs.50.00 to 100.00 per bag. But on the other hand gur was quoted higher by Rs100..

Barring IRRI-6, prices of all types of rice including sela and kernel type of basmati were firmly held at the last levels, while IRRI-6 was quoted higher by Rs10.

Cereals were actively traded under the lead of maize which was quoted modestly higher, while bajra and barley settled around the previous level after early week increase.

Major industrial raw materials including guar-seed were firmly held at the previous higher levels but ready off-take was light as processors were not inclined to make bigger commitments at the rising prices.

Oilseed sector showed firm trend amid active demand from the crushers and reports of slow arrivals from the upcountry markets. Prices of major seeds including rapeseed, castor seed, til were firmly held at the last levels, while cottonseed showed a modest increase.—M.A.