Trading on Karachi wholesale commodity markets remained slow as leading commercial and brokerage houses did not make any fresh buying followed by the reports of a comfortable ready position.

Arrivals from Punjab and Sindh markets remained fairly steady, which in turn did not allow any major change in the prices of essential commodities, nor in raw materials.

While main essential items, including wheat and sugar were traded modestly higher from the previous levels, despite steady arrivals, some industrial raw materials remained under speculative hold.

For the second week in a row, sugar showed a modest increase followed by the reports of a fall in new crop arrivals from the Sindh mills, while wheat rose amid reports of pressure on ready supplies.

According to market sources, prices are still low as compared to previous several years and may fall further owing to reports of another bumper sugar crop. Crushers are claiming to holding the price line.

Guar seed was leading which exhibited a sharp increase in the last couple of weeks despite steady new crop arrivals from the upcountry markets. "The commodity appears to be in the tight grip of speculative forces, which are holding it despite reports of a bumper crop after a lean year, when prices rose to a record level of Rs1,800 per bag of 100kg", said a leading broker.

During the last about a month, prices have risen to Rs1,150 per bag from Rs825, making its exports more expensive, he said. Guar seed, after processing into gum powder, is one of the major export earners, widely used by the westerners as an industrial chemical.

However, since about one year, it has remained in the tight grip of some leading parties. On essential counters, unlike the previous weeks, prices remained stable as supplies matched the local demand - thanks to steady arrivals from the upcountry, dealers said.

Among other essentials, wheat followed sugar and posted a fresh gain of Rs20 per bag after having modestly fallen from the current high levels during the last couple of weeks. Sugar rose by Rs5 to 15.

Pluses on the other hand did not show much change and were steadily held at the previous levels barring gram and gram dal, which posted gain ranging from Rs80 to 85 per bag.

On the rice sector, sela type of basmati rose by Rs100 per bag followed by the reports of steady active support extended by the exporters. Irri broken also attracted good support and posted a gain of Rs30.

New crop Irri and other types of basmati were traded at the previous levels amid steady new crop arrivals from Sindh and Punjab markets.

Cereals again showed steady trend as prices of bajra and maize were firmly held at the last levels, while jowar suffered a fresh decline of Rs5, amid slow trading.

After remaining static at previous levels for the last couple of weeks, new crop barley came in for active buying from the exporters and was marked up by Rs40 per bag.

Oilseeds showed easy trend as prices of new crop rapeseed fell further by Rs5, while all other types were traded at the previous level followed by the reports of steady oil market.

Cottonseed remained in active demand followed by the reports of lower cotton crop and firm cakes market.

Castorseed was also held unchanged in the absence of strong demand from the local crushers. Til on the other hand came in for fresh support from the private sector exporters and rose by Rs50 to 75. Reports of a short crop was another aiding positive factor.

Oilcake showed mixed trend, while rapeseed cakes fell by another Rs5 on selling prompted by steady new crop arrivals, cottonseed cakes were firmly held at the previous levels.-M.A