Mixed trend was seen on the Karachi wholesale commodity markets during the last week as prices of essential items rose and fell followed by the reports of stock position on the ready counter depending on the arrivals from the upcountry trading centres.

However, unlike the previous couple of weeks when price movements were orderly, the last week witnessed major price changes followed by some positive reports on the export front, dealers said. Rice varieties, notably basmati came in for strong support and ended sharply higher amid reports of large export business. But on the other hand pulses, notably imported stuff remained under pressure as importers liquidated long positions owing to war fears with India.

Wheat prices, for instances,have been stable for the last several weeks and did not show much changes despite end of Afghan war and reported resumption of supplies to that country from here. But reports of fresh export deals for over half a million tons of the commodity in addition to about 0.3m tonnes already physically shipped, triggered strong local buying in wheat and pushed it prices sharply higher.

“The commodity may not be in short supply owing to a last bumper crop and a comfortable stock position, some of the commercial traders made it look so”, the dealers said.

But some others claim as the new wheat crop is just being sown and it will not be before April next year when the harvesting will resume and in between anything can happen.

Another interesting development was that the fine basmati type came in for active support from some leading exporters indicating the revival of foreign demand. Moreover, further decline in IRRI varieties was resisted as shipments under the previously signed agreements were maintained at a brisk pace.

There was, however, a relevant quiet on the sugar front despite reports of continuing tussle between the growers and the millers over selling prices.

However, the sudden increase in wheat prices reflects that exports to neighbouring Afghanistan have already resumed after the end of the war, dealers said.

Wheat prices consolidated their previous gains on reports that fresh export deals for 0.200 million tons of the commodity and 0.5m tons of rice with some Gulf and African countries have been signed. Prices were marked up by Rs25.

Sugar on the other hand did not show any change despite reports of standoff with the growers and were held unchanged. Gur and desi sugar were, however, were exceptions which fell by Rs100 to 200.

But the rice sector showed divergent trend amid slow ready offtake. While the fine types of basmati showed sharp rise ranging from Rs50 to 250 per 100kg bag, and so did the IRRI, other varieties were traded at previous levels.

Unlike the previous week, pluses showed mixed trend amid alternate bouts of buying and selling. While tuver, masoor and masoor dal suffered fall ranging from Rs125 to 200 per 100kg bag, the largest decline of Rs400 being in gram whole. Peas and moong posted gains ranging from Rs140 to 175, with others remaining unchanged.

Guar followed the lead of other raw materials and suffered fall of Rs45 amid slackened demand. Arrivals of new crop were modest.

Cereals showed mixed trend and while bajra and jowar did not show any change, maize was quoted higher by Rs10 on stray demand.

Oilseed sector showed easy trend as major seeds including rapeseed were marked down by Rs35 to 40 per 40kg on selling prompted by the reports of new crop arrivals from Sindh and weak oil market.

Cottonseed and castorseed on the other hand were traded at previous levels, while til posted gains ranging from Rs15 to 20.

Oilcakes depicted mixed trend amid slow trading. Cottonseed cakes rose by Rs4, while rapeseed cakes remained pegged at the last close.—M.A