THE WHOLESALE commodity markets of Karachi last week again showed mixed trend as the prices of a number of essential items rose and fell on the selling prompted by the reports of steady arrivals from the upcountry trading centres.

The market decline was led by the pulses sector where prices generally tended lower, and were changed on the selling by importers followed by the reports of larger imports. Two ships loaded with the commodity arrived last week.

After ruling easy for last couple of weeks, prices of wheat posted modest increase on local buying triggered by the reports of fresh export deals and physical shipments against the previous contracts.

Reports that a wheat loader was in the port and was expected to sail out to a foreign destination after loading 15,000 tons of the commodity also aided the sentiment.

However, price increase was modest and reflected that supply gaps were quickly filled in by local stockists who hold sufficient stocks to meet any emergency demand.

Dealers said, the price outlook for wheat appears to be quite bullish amid reports that a high-powered delegation is due to visit Egypt and some other Middle Eastern countries on a big sale mission.

For two consecutive seasons, Pakistan was harvesting bumper wheat crops, but was also facing export problems being a new entrant into wheat export trade coupled with a tough competition from major competitors, they added.

The export prospects of sugar appear bleak owing to higher cost of production making its export more expensive as compared to others. Prices rose by Rs5.

There is a talk to export 0.2 million tons of sugar, which is billed as an exportable surplus after meeting the local demand. Crushers are demanding a subsidy of Rs6,600-7,000 per ton to make it more attractive for foreign buyers.

Sugar mills claim that production cost comes to Rs17,500 per ton as compared to the ruling world prices of Rs12,500-13,5000, and that they were unable to export the surplus without official help.

As a result, prices of sugar have declined owing to larger unsold stock of 1.3 million tons lying in godowns, both in Sindh and Punjab. The net decline over the week was of Rs35 per bag, while gur on the other hand rose by Rs200.

Rice sector on the other hand maintained a firm posture followed by active local demand, and a slight pressure on the ready supplies.

The largest rise of Rs50 per bag was noted in sela type followed by Irri broken types, which rose by Rs100, with all other varieties remaining pegged at the last close.

Market decline was led by pulses, which came in for active selling and finished lower by Rs50 to 100 for urad, peas, and the largest fall of Rs100 per bag in masoor imported type. Others were traded at the last levels.

Among cereals, both maize and jowar were traded at the last levels on stray buying at previous week’s higher levels. Barley was also unchanged but bajra came in for strong support and rose by Rs75.

After ruling static for last several months, guar came in for strong support from the local processors amid reports of export resumption. Prices rose by Rs130 to 180 per bag.

Oilseed sector showed firm trend as the price of rapeseed rose by Rs20, followed by the reports of firm oil and cakes market. Castorseed and til suffered fall ranging from Rs5 to 50, largest decline in til.

Oilcakes came in for active support and rose by Rs2 for rapeseed and 20 for cottonseed, followed by the reports of slow arrivals from the Sindh markets.—M.A