The Karachi commodity markets showed mixed trend last week as the prices of essential items rose and fell modestly, followed by conflicting reports about the ready supply position.

Dealers said because of the Eid holidays, arrival of various commodities from the upcountry markets were far below the daily average, but as demand too, remained on the lower side, prices generally remained stable.

Although, arrivals from the upcountry markets showed improvement late in the post-holiday week, prices of most essential items depicted orderly changes, they added.

As a matter of fact, normal trading resumed after the mid-week as during the first two sessions, the post-Eid mood to exchange greetings prevailed, showing no tangible business deals.

Normal trading activity is expected to begin by next week as by that time arrival of various commodities would become normal, setting the price trend.

Most of the essential items did not show much change as the supply position remained fairly stable. Sugar prices, for instance, remained stable amid conflicting reports of the resumption of new crushing season by the mill owners of Sindh sugarcane belt.

The sugar mills in Sindh have earlier announced to start the new crushing season from December 10, but it was further delayed as some of the owners failed to honour their commitments due to various technical reasons.

There are reports circulating in the market that supplies from Punjab sugar mills are being arranged to meet any shortfall in local supplies during the next couple of weeks. Punjab sugar mills have resumed their operations from end-November, market sources said.

However, wholesale prices fell modestly by Rs15 to 30 as supply gaps were filled in, from the carryover stocks of about 0.250 million tonnes, as well as on stray new crop arrivals as some of the mills have started their operations.

Rice sector was an exception, and ruled weak despite steady export of the new crop. Over-supply owing to steady new crop arrivals was said to be the main negative factor behind price decline.

Three rice loaders are in the port loading fresh consignments of Irri for a Gulf destination. Another ship has left after loading the commodity.

As a result, rice varieties, notably fine types of basmati, including sela and Irri types remained under pressure and fell by Rs50 to 100 per bag. Other types, including basmati and kernal types were held unchanged amid active demand.

Guar, which has been stable around Rs1,750 per bag during the last couple of weeks came in for modest selling followed by the reports of steady arrivals of the new crop from some of the growing areas and may fall further after the pace of new crop arrivals picks up, they added. The net fall was of the order of Rs45 per bag.

Wheat was traded mostly at previous levels as supplies matched the mill demand. But some of the private sector exporters were looking for fine quality against their foreign sales. Talks for some consignments are said to be in advanced stages and the quantity involved is substantial. Prices were quoted higher by Rs5 per bag.

Pulses came in for active selling. Prices of gram whole, gram dal, and masoor were held unchanged at the previous levels barring former, which rose by Rs50. Tuver, urad and some others were marked down by Rs25 to 185.

Cereals again showed firm trend as maize, bajra and barley were quoted higher by Rs15 to 40, jowar was traded at the previous levels.

Oilseed sector showed steady trend as rapeseed posted gains ranging from Rs25 to 40 owing to firm oil cakes market. New crop cottonseed was again not quoted as crushers are taking direct deliveries from the ginners.

But til came in for modest support at lower levels and was held unchanged at previous levels amid modest trading.

Oilcakes attracted modest support at lower levels as the price of cottonseed rose by Rs5, while rapeseed cakes were traded at the last levels.—M.A