The Karachi wholesale commodity markets showed firm trend during the previous week, as prices of most of the essential items remained around the previous levels.

Local stock position claimed to be fairly comfortable, thanks to the steady arrivals from the upcountry trading centres, which did not allow any major change in the prices of essential items, including wheat and some types of pulses.

Sugar, among the essentials, was an exception, which came in for renewed support from the stockists and the commercial houses, followed by the reports of possible export to Afghanistan.

According to mill sources, government has allowed the export of surplus to Afghanistan to ease the long unsold stock position being held by the members of the sugar mills association.

The quantity being talked about is 0.2 million tons and whether it will be on quota basis, or the association will handle the job according to various formulae, is currently being discussed among the members.

The mill owners claim that they still hold an unsold stock of over a million tons and has put the exportable surplus at half a million tons after meeting local demand, till the new crushing season, the market sources said.

The other essential items, however, depicted minor changes barring some varieties of pulses, which came in for modest selling as demand from Punjab dealers was on the lower side of the weekly average.

Rice sector witnessed active trading followed by the reports that physical shipments against the contracts already signed are being made. A ship, which arrived earlier in the week to load the contracted consignment was still in the port at the end of the week.

But prices remained stable owing to the falling unsold stocks with the local stockists and the brokerage houses. Arrivals from the Sindh markets were also on the lower side.

The biggest rise of Rs300 per bag of 100kg was noted in sela type of basmati on the reports of strong demand from the foreign buyers followed by basmati, which rose by Rs25 to 100. Irri broken also rose modestly. Sela type was quoted at the level of kernal variety, which is normally sold at a premium of Rs200 to 300 per bag.

Unlike the previous week, Irri varieties came in for active selling indicating lack of fresh export orders and as a result, the prices of Irri-9 fell modestly by Rs25 per bag. Its broken variety, however, was marked up by Rs10.

Among other essentials, wheat turned easy despite reports of steady exports to various countries and the reports of fresh deals with a number of countries, including Afghanistan. The prices were quoted lower by Rs10 per bag.

Pulses again came in for active selling at the fag-end of the week and fell by Rs50 to 100 per bag for moong, beetle and masoor dal, but the biggest fall of Rs180 to 200 per bag was recorded in gram whole and gram dal, while masoor, tuver and urad were traded at the last levels.

Sugar on the other hand again came in for strong support followed by the reports that Afghanistan may import a substantial quantity of the commodity from Pakistan, up Rs35 to 60. Desi sugar and gur also rose by Rs20 and 100 in sympathy.

Among the cereals, bajra fell by Rs25 followed by a modest rise of Rs5 to 10 in jowar and maize, but barley were held unchanged amid slow trading in the absence of strong demand.

Oilseed sector showed quietly steady trend amid active demand from the crushers and reports of slow arrivals from the Sindh markets.

Rapeseed depicted firm trend because of the active demand and steady conditions prevailing in the oil and cakes sector and was quoted unchanged, while til rose further by Rs50 per 40kg and so did castorseed, up Rs5.

Cottonseed was again not quoted on the ready board for the last about two months after the stocks of the old crop were exhausted. However, dealers hope new crop cottonseed is expected to come on the board by the end of the current month as some ginneries in the lower Sindh cotton belt will resume ginning operations by that time.

Oilcakes ruled mixed as prices of rapeseed were marked down by Rs3, while cottonseed cakes were quoted unchanged amid active trading followed by the reports of pressure on ready supplies.—M.A