There was a relative calm on the wholesale Karachi commodity markets earlier in the week. The prices of essential items did not show much changes and were mostly traded at the last levels. But at the fag-end of the week, technical calm was broken on the indulgence of commercial houses in alternate bouts of buying and selling, on the re-entry of Punjab traders for the first time after the budget.

However, much of the activity remained centred around some major export items, reflecting that the exporters have secured substantial orders from the overseas buyers for the new fiscal year, starting from July 1, 2002. But the pulses came in for active selling from the importers for no apparent bearish reason.

Rice was on the top of the list, where prices of fine types rose further, followed by the reports of fresh import orders from the Gulf and some European buyers.

Basmati types, including kernel have been in active demand from the local exporters for last couple of weeks, as they covered their positions to meet the shipment deadlines.

Two ships arrived during the week to load the contracted consignments and on an average loaded about 3,000 tons of the commodity daily to clear the loading ships within the specified time.

Unlike previous week, Irri varieties came in for active buying indicating fresh export business and as a result, the price of Irri-6 rose modestly from Rs25 to 75 per 100kg. Basmati varieties posted gains ranging from Rs25 to 100, the highest rise being in sela.

Dealers said apart from the lack of sufficient demand from the upcountry traders for some essential items, notably imported pulses, the other factors behind the sluggishness were the reports of comfortably ready position — thanks to the steady arrivals from the upcountry markets.

They said the pulses sector, which generally leads the activity on other counters because of its essential nature, attracted selling followed by the reports of arrivals of fresh consignments from the foreign sources.

Importers claim they are planning to open fresh Letters of Credit for the new year consignments during the next couple of days as the new budget has also exempted them from the sales tax and the import duty.

Among other essentials, wheat turned easy despite reports of steady exports to various countries, the latest being of 31,000 tons to Iraq, which will be followed by others in due course, the market sources said. It ended lower by Rs5.

Pulses came in for active selling at the fag-end of the week and fell by Rs30 to 90 per bag for moong, urad, gram whole and gram dal, while masoor and masoor dal were traded at the last levels.

Sugar on the other hand came in for stray support followed by the reports that Afghanistan may import a substantial quantity of the commodity from Pakistan, rising by Rs5. Desi sugar on the other hand fell by Rs20.

Among cereals, bajra rose by Rs25 followed by a modest rise of Rs5 in jowar, while maize and barley were held unchanged amid slow trading.

Rapeseed resisted fresh decline owing to firm conditions prevailing in the oil and cakes sector and was quoted unchanged, while til rose by Rs35 to 50 per 40kg, with castorseed falling by Rs15 on the slackened demand from the export houses and the local crushers.

Cottonseed was again not quoted on the ready board, as had been for the last two months after stocks of the old crop were exhausted.

Dealers said the new crop cottonseed is expected to arrive in the market possibly by the first week of next month, as by that time, the ginners of lower Sindh are expected to resume new crop processing. Being a by-product of cotton, it is expected to reopen on a higher note, they added.

Oilcakes ruled bullish as prices of both rapeseed and cottonseed cakes were quoted higher by Rs10 to 15 amid active trading, followed by the reports of pressure on ready supplies.—M.A