Pulses remained under pressure on the Karachi wholesale markets during the preceding weeks owing to oversupply followed by larger unsold stocks lying in the go-downs of importers.

Dealers said leading importers have made substantial imports of the commodity from various sources ahead of the trade policy for the next year fearing some changes in the import list and withdrawal of tax exemptions.

But as the policy did not change the policy in regard to import of essential commodities, notably pulses,importers started liquidating their long positions for the third week in a row and the consequent persistent decline in prices,they added.

Owing to easy supply at cheaper rates,local demand from the wholesalers as well as traders from the Lahore markets remained slow,which in turn also caused decline in prices because of large selling.

Other essential items on the other hand stayed firm under the lead of wheat followed by reports that about 0.2m tonnes of the commodity has been physical shipped to various counters under recently signed export deals by the Trading Corporation of Pakistan and some leading private sector exporters. Price was quoted higher by Rs5 at the fag-end of the week

However, the TCP has still to go a long way to sell the entire exportable surplus of about a million bales but prices are expected to stay firm around these levels as exports are expected to pick further up after the Middle East markets were fully exploited.A ships to load 14,600 tons of wheat is in the port to load the commodity.

Sugar prices, which have been declining for the last couple of weeks also remained stable followed by reports of imposition of five per cent excise duty on the import of raw sugar.Sugar desi was an exception, which rose by Rs50.

However, millers fear that the larger carryover stocks of 1.2m tonnes are still on the higher side and could work against the price mechanism before the start of the new crushing season in late October or early November.

The on-going talks between the millers and the ministry of commerce to find a way out from the current impasse through exports could be the best option to dispose of the large unsold stock,dealers said.

Rice sector also maintained a firm posture followed by active local demand and a reported slight pressure on the ready supplies.

The largest rise of Rs100 per bag was recorded in sela type followed by IRRI broken type,which rose by Rs5 with all other varieties remaining pegged at the last close.Basmati also fell by Rs25.

The market decline was led by the pulses sector,which came in for renewed selling and finished lower by Rs50 to 15 for beetle,largest fall of Rs50.to 150 per bag being in masoor imported and masoor dal. Peas rose by Rs40 on stray support.

Among the cereals, both maize and bajra were traded higher by Rs35 to 50 on strong buying at the previous week’s higher levels. But barley was traded unchanged but jowar came in for stray selling and fell by Rs5.

Guar came in for fresh buying followed by reports of a short crop in Sindh owing to lack of rain and local processors indulged in fresh panic buying,pushing prices further higher by Rs45 to 75 per bag.

Oilseed sector showed firm trend as prices of rapeseed rose further by 10.00 60.00 followed by reports of pressure on supplies and firm oil and cakes markets.Castorseed were held unchanged,while til posted gains ranging from Rs15 to 25.Castorseed were traded at the previous levels. New crop cottonseed was again not quoted on the ready board.

Oilcakes showed bullish trend amid reports of short supply and prices were further marked sharply higher by Rs15 for rapeseed and Rs30 for cottonseed cakes.—M.A