THE trading on the Karachi commodity markets last week witnessed another price flare-up as pressure on supplies continued to inspire panic buying both from retailers and wholesalers.

Floor brokers said ready position remained tight as arrivals from upcountry markets were not normal and consequently prices of essential items increased sharply.

The other factor which caused fresh price flare-up was reports of holding back of stocks by commercial houses and importers, notably of pluses sector, they added.

The ready off-take by both general consumers and the industrial sector was on the lower side as most of the time they kept to the sidelines awaiting softening in prices.

Wheat prices, on the other hand, showed modest decline partly because of fixation of procurement price at Rs510 per 40 kg and partly to release of fresh stocks of imported stuff to the mills.

Market sources said procurement price of Rs510 was well below the level at which new crop from Sindh was being sold by dealers and farmers. Official reports indicate that an average rate for the new crop is around Rs600 per 40 kg.

They said wheat price could further ease during the next couple of weeks after arrival of new crop in open markets.

According to market reports, the country is on the threshold of wheat harvesting and another record crop of around 25 million tons was expected, which would further lower the ruling prices.

On the other hand prices of essential items, including pulses and rice, maintained upward drive as short supply and higher export continued to fuel speculative increase in prices, dealers said.

An idea of price hike in rice varieties may well be have from the fact that the hitherto inactive basmati varieties also joined the race and were quoted higher by Rs500 per bag, while fine types including sela and kernal were traded at previous levels.

The notable feature of the week’s trading was that the cereal sector also joined the run-up and was quoted sharply high under the lead of jowar, which rose by Rs200 per bag.

The market advance was again led by some essential commodities under the lead of some pulses and rice, which remained under pressure amid reports of short supply.

The largest increase was reported in basmati type, which rose by Rs500 per bag of 100 kg followed by IRRI-6 and IRRI-9, which posted gains of Rs50 and Rs200 respectively.

Fine varieties, including sela and kernel, were traded at previous levels because of low demand from exporters and higher ruling prices, which are quoted at peak levels.

Gram whole and gram pulse prices also rose by Rs175 to Rs200 per bag, while imported stuff were held unchanged.

Among other essentials, wheat and sugar came in for active selling and were quoted lower by Rs100 and Rs30 respectively. Desi sugar remained under pressure and was quoted lower by Rs300 per bag of 40 kg on selling followed by steady new crop arrivals.

Cereals on the other hand showed divergent trend. While jowar rose by Rs100 to Rs150 per bag, maize fell by Rs25 with bajra and barley remaining unchanged at previous levels. Guar seeds on the other hand rose by Rs50.

Oilseed sector showed firm trend as prices of major seeds, including rapeseed and cottonseed, were quoted higher by Rs25 to Rs50 per 40 kg, castor seeds on the other hand were held unchanged at previous levels.

Til was an exception and maintained its upward drive and rose by Rs200 per 40 kg partly on active export demand and partly to short supply.

Oilcakes both rapeseed and cottonseed cakes came in for active demand from the crushers and were marked up by Rs20 for both.—MA