THE wholesale Karachi commodity markets showed easy trend during the last week, as barring few, prices of all essential items suffered a decline in the absence of strong demand from any quarter.

As the deadline of presidential referendum is approaching, business activity in major markets are at a standstill as buyers are not inclined to make fresh purchases. As a result, prices of most of the essential items are declining in each session owing to lack of demand rather than large selling from any side.

Most dealers claim, the physical activity has fallen to a low ebb as leading commercial houses are worried over the untimely sluggishness and the lack of buying support.

Upcountry traders are dumping their stocks here despite our warning to hold them on, which seems to have further dampened the price line, they added.

Dealers said normal trading activity is expected to be resumed during the first week as by that time the prevailing uncertainty about the presidential referendum will be over and traders are expected to get back to their respective work.

The larger-than-expected new crop arrivals of both wheat and sugar also prompted selling from the local stockists as some of the upcountry traders lowered their prices to get hard cash.

Although, talks about fresh export orders for rice and wheat were well in progress between private and public sector high-ups and foreign buyers, no fresh deal is signed and there is a relative quiet on the export front for time being.

Reports from the up-country wheat belt are not that encouraging as growers are claimed to be facing some problems at the official procurement centres, notably in getting bags.

As a result, middle men and private traders are active and are buying wheat from the growers around Rs250 to 260 per 40kg as against the official procurement price of Rs300 per kg.

Those farmers who need payments in cash are not inclined to go for official centres and prefer to sell their stock to local businessmen who pay them in cash on spot, the dealers said.

The market decline was led by sugar and some types of pluses, which remained under pressure on steady arrivals from the upcountry markets and relatively slack demand.

Sugar white feel by Rs40 per bag of 100 kg, while gur suffered fresh fall of Rs50 on selling by commercial dealers followed by reports of slow demand from Afghanistan.

Rice sector showed mixed trend amid slow trading. While IRRI-6 rose by Rs15, IRRI-9 Sindh and basmati fell by Rs15 to 25 per bag owing to slack demand from exporters.

After having fallen sharply during the last two weeks on selling prompted by steady arrivals, wheat prices resisted fresh decline and were marked up by Rs15 per bag amid slow mill offtake.

Pluses again ruled mixed. While moong, masoor dal and urad showed fresh gains ranging from Rs155 to 100 per bag, the largest rise of Rs100 per bag being in masoor dal imported types owing to shortage of stocks.

Peas and beetle on the other hand remained under pressure and were marked down by Rs50 to 125 per bag, while all other types were traded at the previous levels.

Guar showed easy trend on renewed selling from the local dealers followed by the reports of steady arrivals from the upcountry centres and were quoted lower by Rs5 to 10 per bag.

Cereals lacked normal trading interest and as a result prices of maize and bajra were held unchanged at the last levels amid slow trading. Jowar was an exception, which came in for selling and fell by Rs10 to 15 per bag.

Barley consolidated previous gains on renewed support from the exporters and managed to finish at the previous levels amid active trading.

Oilseed sector showed quietly steady trend as the price of cottonseed were again not quoted but rapeseed attracted active support despite reports of larger new crop arrivals from the Sindh markets and were quoted higher by Rs5 to 15 per maund. Firm oil and cakes markets also aided the underlying sentiment.

Castorseed lacked normal interest in the absence of strong support from the exporters and remained pegged at the last levels and so did the til.

Oilcakes showed steady trend as prices of cottonseed cakes were held at the last levels, rapeseed cakes posted gains ranging from Rs5 to 25 per maund

in sympathy with the rapeseed.—M.A.