Prices of some essential items showed a modest increase on the Karachi wholesale markets last week on the resumption of normal trading activity after monsoon rains. But most price changes were fractional, reflecting easy supply position.
Arrivals from the upcountry markets picked up as cargo haulers were ready to go anywhere in the interior of Sindh and Punjab to facilitate the two-way trade.
The supply position, therefore, was a bit comfortable — thanks to the stepped up arrivals of both essential items and the industrial raw materials from the upcountry markets. This in return did not allow any major change in the prices, dealers said.
However, the instances of strong pent-up demand were not lacking, notably on some essential counters, as both the retailers and the wholesalers covered their positions at the prevailing rates, they added.
Modest activity was witnessed on the export sector followed by the reports of resumption of rice exports.
Although ready stocks with private sector stockists and commercial houses have reportedly been exhausted some months back, but the Trading Corporation of Pakistan (TCP), released about 50,000 tonnes from its stocks to private sector exporters.
Two ships have been in the port during the last two weeks and had sailed out with 25,000 tonnes of the commodity to the Gulf and Africa.
Although, new rice crop will start arriving in the market sometime in late September or early October, the demand for local sela and kernal types of basmati is picking up in the Gulf as was reflected by the increase in their prices, brokers said.
There was, however, a relative quiet on the sugar front as no breakthrough has been made in it’s export.
The government has set up a task force, which will explore the possibility to sell the commodity to some foreign buyers.
The TCP has also asked the government for another 0.1 million tonnes after having exported an identical quantity a couple of months back.
But the price of sugar did not show any change for the fourth week in a row and were firmly held around the previous level amid modest activity.
The supply position remained comfortable followed by the reports of fresh arrivals from the mills.
Rice showed quiet trend despite reports that the commodity is being loaded at the port after a gap of few weeks. Private sector exporters who still have stray stocks of the old crop are selling it at higher rates to foreign buyers.
Basmati and sela showed a modest rise of Rs50, while others remained firmly held at the previous levels amid slow trading because of rain.
While wheat rose by Rs10, followed by the reports of short supply owing to slow arrivals from the upcountry markets, desi sugar came in for active buying and rose by Rs100. Gur on the other hand suffered a decline of Rs50.
Pulses displayed firm trend amid alternate bouts of buying and selling as prices of gram whole and gram dal consolidated their previous gains, while beetle came in for stray support and was quoted higher.
Other varieties remained pegged at the last close under the lead of masoor dal imported type, tuver and urad amid modest ready offtake at the unchanged rates.
Guar resisted fresh selling followed by the reports of fresh local buying by the processors and was quoted unchanged at the previous levels amid active trading.
Cereals showed quiet trend followed by the reports of slack ready demand. Prices of jowar, maize, bajra and barley were held unchanged at the last levels.
Oilseed sector lacked normal buying interest from the crushers and as a result the prices of rapeseed remained unchanged at previous levels, but castorseed came in for stray for selling and ended lower by Rs25.
Oilcakes were quoted higher for rapeseed cakes, while cottonseed cakes suffered a fall of Rs5 on selling followed steady arrivals of new crop from the lower Sindh ginneries.—M.A.