Mixed conditions prevailed on the Karachi wholesale commodity markets during the previous week. The prices of major essential items rose and fell, amid alternate bouts of buying and selling.

Arrivals from the upcountry markets were fairly steady, which did not allow any major change in the prevailing price structure after about last month’s violent fluctuations. Some essential items experienced fall, but fractionally, thanks to the demand at lower levels.

Dealers said the markets seem to have passed through a consolidation phase for the first time after the post-Eid trading. The comfortable ready position, notably on essential counters, kept the speculative activity in check.

Sugar value, which had dropped to new lows since the new crushing season started last month, triggered partly.

This was because of a large carryover stocks and the resistance of larger decline by the new crop, which stayed at previous levels. The net fall over the week was of Rs15, dealers said.

The resistance to fresh decline was attributed to holding back of new crop by the mills to forestall further fall followed by a considerable decline in the local demand.

Mill-owners are awaiting positive reply from the government in relation to their demands, including the purchase of surplus commodity on the state-account. There is no official reply as yet.

The Trading Corporation of Pakistan (TCP) is expected to purchase another 0.1 million tonnes of the commodity from mills after having bought an identical amount last month.

On other essential counters, wheat remained under pressure, followed by the reports of steady arrivals from the upcountry markets and on release a substantial quantity from the official stocks. Prices ended further lower by Rs10 per bag.

Rice sector on the other hand showed firm trend followed by the reports of revival of strong export demand.

Private sector exporters have already made forward deals for a substantial quantity, notably of Irri types with the Gulf and some African countries’ exporters.

Rice loaders are calling at the port each week and depart after loading the consignments meant for various ports.

Reports of some damage to the new crop in Sindh was said to be one of the bullish reasons keeping the prices fairly steady together with unruffled sailing on the export front, brokers said. Prices of Irri broken and kernal basmati rose amid brisk trading on export demand.

Some other essential items, notably on the pluses counter, also came in for active selling and suffered modest to sharp decline amid active trading.

On other essential counters, pulses showed an easy trend, while peas, gram dal and gram posted fall ranging from Rs25 to 35 per bag on renewed selling by the commercial houses.

Major fall of Rs200 was witnessed in the imported masoor variety, while masoor rose by Rs100.

Guar prices ruled firm around the previous levels, despite reports of new crop arrivals from the Sindh markets and finished modestly higher.

Cereals again showed mixed trend as prices of jowar and maize tended lower by Rs10 to 40 on active selling made by the brokerage houses, while maize rose from the previous levels. Barley was traded at the at the previous level, so did bajra.

Oilseeds showed easy trend as prices of rapeseed fell further by Rs15 to 25 on active selling followed by the reports of weak cake and oil markets.

Castorseed and cottonseed, on the other hand, stayed firm followed by active support extended by the crushers in the backdrop of a short cotton crop.

Til prices maintained their upward drive partly because of a short crop and partly to active demand from the export houses and rose by Rs50 to 100.

Oilcake prices fell by Rs5 both for cottonseed and rapeseed cakes, on active selling in the absence of strong demand from the crushers.—M.A