Last week saw firm trends on the Karachi wholesale commodity markets as the prices of essential items generally rose on the reports of pressure on ready supply.
All rice varieties, notably basmati led the market advance rising sharply higher after remaining static for the last couple of months in the absence of strong foreign demand.
“The chief factor behind the price flare-up were the falling stocks, bulk of which had already been exported by the private sector”, dealers said.
Rice prices could rise further till the time new crop arrives, probably by late September, they said adding the other contributory factors were the rising export orders from the Gulf countries. The biggest increase was recorded in sela followed by kernal basmati which rose by Rs200 per 100kg bag.
However, it was satisfying to note that the export demand of fine types of rice was revived and some leading exporters were making forward sales for shipments up to December 31, brokers said.
After remaining static for the last couple of weeks, sugar prices declined by Rs25 to 35 per bag, despite the reports of a buffer stock of 0.1m tonnes to bail the crushers out from the production glut. Reports that sugar mills would resume the new crushing season from December to clear the backlog of unsold stocks failed to check the decline in prices in the absence of exports.
Cereals and some industrial raw materials followed them amid rising demand and falling supplies in the backdrop of a considerable decline in arrivals from the upcountry markets.
“The prevailing lull on the commodity markets for the last couple of weeks was at last broken”, market sources said.
They said although there were no reports of holding back of stocks, the current price flare-up could be attributed to supply and demand factors.
Wheat showed a modest decline of Rs5 in sympathy with sugar followed by the reports of steady arrivals from the Sindh markets and a reported decline in the mill demand.
Rice sector showed firm trend followed by reports of fresh forward export agreements with the foreign importers. Some private sector exporters who still have stray stocks of the old crop are selling it at higher rates to the foreign buyers.
Prices of basmati, sela and kernal varieties showed fresh hike of Rs50 to 200 per bag, while Irri broken surged by Rs50 to 200. Pulses maintained firm trend and climbed by Rs50-210 for gram, masoor dal and beetle, while all other varieties were traded at the last levels amid active trading.
There was no pressure on the ready supplies owing to steady arrivals from the upcountry markets, the boost in the prices of few pulses was due to the active local demand, dealers said.
Cereals on the other hand depicted divergent trend amid alternate bouts of buying and selling.
While maize rose by Rs65, and jowar was firmly held at the last levels. Bajra came in for active selling and was marked down by Rs50 to 75 per bag.
Guar remained under pressure and was quoted lower by Rs20 on the selling by local stockists followed by the reports of a healthy new crop due in late October.
Brokers ruled out the possibility of fresh decline as the stockists are holding back stocks after a persistent decline in the prices followed by reports of higher new crop because of rain in the barani growing areas, including Tharparkar.
Oilseed sector showed steady trend amid active trading as crushers resumed their buying operations from the mills and as a result the prices of rapeseed were quoted higher by Rs20 from the previous levels. The castorseed Lasbela type attracted selling at higher levels followed by a slack demand from the local processors and was quoted lower by Rs25 to 50.
Til on the other hand remained under pressure followed by the reports of drying up of foreign support owing to higher prices and fell by Rs100 per 40kg.
Oilcakes were again quoted unchanged for the rapeseed cakes, while the cottonseed cakes attracted active support despite reports of larger new crop arrivals from the Sindh ginneries and rose by Rs2 to 7.—M.A.
The following are Karachi wholesale commodity market rates in rupees with comparative figures for the same period last year.
As on Aug A week ago Corresponding
29, 2003 last year
CEREALS (Per 100 kg gross)
Bajra 800/875 875/925 950/1050
Makai (Maize) 790/825 725/760 840/860
Wheat 890/- 895/- 850/860
Jowar 1300/1500 1300/1500 750/760
Barley 720/- 720/- 735/-
PULSES
Moong (Sindh) 1775/1788 1775/1788 1812/-
Moong (Imported) — — —
Masoor (Sindh) — — —
Masoor (Imported) 1950/2500 1950/2500 1750/2400
Masoor Dal (Imported)2500/2800 2400/2700 2300/2650
Tuver (Sindh) 1375/- 1375/- 1500/-
Urad (Sindh) 1287.50 1287.50 —
Urad (Imported) — — 1812.50
Peas (Mattar) 1455/1630 1455/1630 1350/1660
Guwar 1210/- 1230/- 1825/-
Gram (Garda) 1490/1530 1440/1470 2150/2350
Gram (Yellow) — — —
Betel 1590/1830 1450/1630 2600/2650
Gram Dal 1725/1755 1700/1730 2600/2750
Chickpeas (Imported) — — —
WHOLE RICE
Irri-9 (Punjab) — — —
Irri-6 (Sindh) SPL 1025/1050 930/1000 925/1000
Irri-9 (Sindh) 1300/1325 1225/1300 1350/1450
Irri-6 (Polished)AFQ — — —
Basmati 2350/- 2300/- 2525/2550
Basmati Kernel 2800/3000 2600/2900 2600/3000
Basmati (Sindh) 2250/2750 2200/2700 2500/2900
BROKEN RICE
Irri White 880/900 885/900 885/890
Basmati 1600/1800 1300/1800 1700/1900
Sugar 1715/1730 1740/1765 2040/2105
Gur 1400/2100 1400/2000 1350/2100
Khandsari 1800/2100 1800/2100 1850/2100
OILSEEDS (Per 40 kg gross)
RAPESEED
Punjab — — —
Nawabshah — — —
Dadu 625/650 625/630 675/700
Sukkur — — —
Mirpur 715/725 715/725 750/760
CASTORSEED
Lasbela 600/- 625/650 520/521
Sindh 600/- 600/- 475/-
Punjab — — —
COTTONSEED
Sindh — — —
Punjab — — —
GROUNDNUT
Sindh — — —
Punjab — — —
Til (Sindh) 1400/1500 1400/1600 1050/1060
OILCAKES
Rapeseed 285/290 285/290 280/285
Cottonseed 380/385 378/- 550/575