THE Karachi wholesale commodity market maintained firm outlook during the previous week as prices of essential items tended further higher under the lead of wheat and some other major export commodities.
Sugar and fine varieties of rice were an exceptions, which remained under pressure and fell followed by reports of some problems on the export front and the consequent selling.
Arrivals of new crop of both wheat and sugar amid reports of another bumper crops from the upcountry trading centres were on the higher side of the weekly average, reports of good export business fuelled the bullish trend.
Reports that sugar mill owners association has decided to market an exportable surplus of half million tons after meeting the home demand, out of a record crop of 3.6m tons, kept sugar prices firm on the local market neutralizing the negative impact of higher crop.
The Trading Corporation of Pakistan (TCP) is also in the sugar export business and had already held successful foreign auctions and sold more consignments at a competitive rate, dealers said.
The entry of the mill owners in the export business, of course, after the sale tax waiver of 15 per cent could cause a price flare-up toward the fag-end of the year, they fear.
Prospects of wheat export to Afghanistan and some Gulf countries are also said to be bright and both the TCP and the private sector exporters are expected to sell the entire exportable surplus well in time.
Meanwhile, it is satisfying to note that exporters have sold a substantial quantity of gram to India and consignments are being regularly shipped under the previously signed export agreements.
Dealers said after being a net importer of all type of pulses from a dozen companies for the last couple of years, Pakistan has assumed the role of an exporter after having harvested a record gram crop of about 0.8m tons.
The reports of exports to India have a positive impact on the prevailing prices of other varieties, most of which remained unchanged at the previous levels, they added.
Prices of some raw materials, notably rapeseed, castorseed and guar showed fresh increase because of reported pressure on supplies followed by reports of holding back of stocks by the upcountry traders, they said.
Wheat rose by another Rs40, while sugar prices suffered a modest decline of Rs10 despite reports of revival of demand from the commercial dealers.
Sugar showed a modest decline followed by reports of a record crop of 3.6m tons but desi sugar was traded at the previous levels. Gur came in for active support and rose by Rs200. Pulses on the other hand showed mixed trend. Barring urad, which suffered fall of Rs62.50, Peas and beetle posted gains ranging from Rs25 to Rs90 per bag of 100 kg, all other varieties were traded at the previous levels as supply and demand evenly matched.
On the rice sector, basmati kernal and sela types attracted fresh selling followed by reports of some problems on the export front and fell by Rs10 to Rs50, largest decline of Rs125 per bag being in sela variety.
IRRI-6, IRRI broken and IRRI-9 Sindh on the other hand posted fresh gains ranging from Rs10 to Rs30 amid active trading.
Brokers said revival of export demand was said to be chief reason behind the increase in prices of IRRI varieties. Pressure on ready supplies was said to be another contributory positive factor.
Cereals showed firm trend followed by reports of slow arrivals from the upcountry markets. Prices of bajra posted gains of Rs55 to Rs60, while maize and jowar were traded at the previous levels.
Oilseed sector, notably rapeseed showed fresh rise amid active trading as prices were quoted higher by Rs15 to Ras20 followed by reports of firm oil and cakes market amid active mill demand.
Til came in for active selling on reports of local selling followed by reports of decline in export demand and fell by Rs25 but on the other hand castorseed remained in active demand from exporters and were quoted further higher by Rs5 to Rs80, the largest rise being in the Lasbela type of til, modest rise of Rs40 to Rs50 in other varieties. Reports of a short crop also aided the sentiment.
Oilcakes showed firm trend as prices of both rapeseed and cottonseed cakes rose further by Rs5 to Rs15 followed by reports of strong oil market and pressure on local supplies.—M.A