The Karachi wholesale commodity markets showed firm trend during last week as the supply position remained under pressure because of a considerable decline in arrivals from the upcountry trading centres.

Market advance was led by the pulses, which rose in unison barring gram varieties, followed by the reports of sharp decline in imports from various countries, notably Iran, Ethiopia and few others.

Gram whole and gram dal were exceptions which remained under pressure as local supplies were enough to bridge the supply gaps, and as a result the prices suffered modest decline, dealers said.

They said some of the importers claim that the price of pulses on foreign markets have increased sharply over the last couple of weeks, which is well reflected in local rates.

Wheat followed it on the market talk of some fresh export contracts by the Trading Corporation of Pakistan (TCP) and the private sector exporters. Fears of short supply and strong-mill buying kept prices fairly stable.

Sugar on the other hand remained unsettled despite the entry of the TCP in the trade. It has already purchased 18,000 tons of the commodity from mills through a tender at Rs18,998 per tonne and is expected to float fresh tenders to support the industry to clear its backlog, brokers said.

The TCP has also floated second tender for the sale of 12,000 tonnes, inviting local mills to offer their selling prices to clear the backlog.

The TCP has also floated an international tender to sell a consignment of 12,000 tonnes. The bids are expected to pour in from various foreign buyers during the next couple of days, they said.

But the wholesale prices of the commodity eased sharply lower on selling by the mills not inclined to hold long the unsold stocks fearing further decline.

Sugar industry may not be out of the red despite official efforts to support it after exploiting foreign markets. The foreign tender price will set the future market trend, they added.

Prices of sugar could not maintain their recovery trend from the recent lows but resisted fresh decline and finished at the previous levels because of a fall in arrival from Punjab mills and lower local demand, falling by Rs30-35 per bag. Gur also fell by Rs100 but sugar desi was held unchanged. Wheat also remained in strong demand amid slow trading followed by the reports of fresh export tenders for a substantial quantity as the prices rose by Rs5.

Pulses on the other hand showed steady trend on the revival of demand from Punjab dealers and pressure on ready supplies. Masoor whole, tuver and urad were quoted further higher by Rs85 to 100. Peas, moong, gram dal, gram whole fell by Rs10-100.

Guar on the other hand stayed firm amid slow trading despite reports of fall in new crop arrivals and was held unchanged.

Rice sector depicted quiet trend followed by reports of ready supply position, although prices of both, Irri and basmati varieties were traded at higher levels.

Cereals on the other hand stayed firm, while jowar came in for fresh support and rose by Rs10. Maize, bajra and barley were traded at previous levels amid slow trading.

Oilseed sector on the other hand showed easy trend on selling after reports of steady new crop arrivals from the Sindh markets. Prices of rapeseed from Mirpurkhas suffered sharp fall ranging from Rs60 to 65. Til on the other hand rose by Rs25 on active export demand but the castorseed was held unchanged.

Oilcakes remained under pressure followed by the reports of steady arrivals. Both cottonseed cakes and rapeseed cakes were traded lower by Rs2 to 3 amid active trading. Modest fall of Rs.2.00 because of slow ready mill demand.—MA