Although the holy month of Ramazan is more than two weeks away, there are no signs of pre-Ramazan price flare-up on any of the counters. Next two weeks could be crucial for the future price trend, dealers said.
In late weekend trading some of the essential items showed modest rise on inter-dealers dealings rather than any pressure on supplies or larger consumer demand, they added.
On the export front, physical shipment of rice against forward deals were judiciously maintained as a rice loader departed after having loaded an export consignment.
Market sources new crop is expected start arriving from some areas of lower Sindh by early next month but they don’t foresee any major changes in the prevailing price outlook as exporter are active and would cover their positions against forward sales to foreign importers.
But by that time new crop of IRRI from the Punjab markets is also will arrive bridging the supply and demand gap both on the local and foreign fronts, they said.
They said the demand for the local rice is expanding significantly, with China and Iran assuming the role of major buyer followed by some African countries and the Gulf.
Despite irrigation water problems, the country is expected to harvest a good crop, ensuring a sizable exportable surplus after meeting the local demand. But there are some smooth export of fine types of basmati owing to tough competition from India.
Rice prices stayed stable amid talk of starting of the new crushing season and increase in procurement prices. Crushers are inclined to resume the season by late next month or early November, while growers are pressing the mills to start the new season from the next month, brokers said.
Unlike the previous week, prices of both pulses and wheat showed minor either-way change as supplies met the local demand amid reports of steady arrivals from the upcountry market and helping hand extended by the importers of pulses.
Among the essential items, bulk of the support remained confined to the pulses sector followed by reports of tight ready position and a good bit of holding back of stocks by the importers.
It seems to be pre-Ramazan price hike by the stockists aided by slow down in arrivals from the upcountry markets. But retailers and wholesalers except to the sideline anticipating decline in prices after supply position improves, market sources said.
The largest rise of Rs.300.00 per bag was reported in masoor whole imported type followed by beetle and urad, which rose by Rs25 to 50. Moong was the only exception, which suffered a setback of Rs250 per bag on selling followed by reports of larger local stuff arrivals from the Sindh markets, they said.
Other essential items including wheat, and sugar were traded at the previous levels as supplies matched local demand. Reports of import of a substantial quantity of the commodity from various foreign sources, however, did not influence prices lower.
Reports that the growers and mill owners have decided to resume new crushing season, a bit late could keep local prices of sugar on the higher side During the holy month of Ramazan, market sources said.
Rice sector followed them as prices of both IRRI and fine types of basmati were held unchanged at the last levels. There was no pressure on local supplies, which remained normal and did not allow any price change, they said.
Physical shipments against forward deals of rice were maintained according to shipment deadlines as another rice loaders called on the Karachi port during the week and loaded an export consignment.
Cereal sector showed mixed trend and while prices of barley fell by Rs30 to 40 per bag, bajra resumed its upward drive and was quoted further higher by Rs.100.00.Jowar was quoted unchanged.
For the second week in a row, guar prices eased further by Rs.50.00 per bag followed by reports of good new crop prospects after the recent rain in Sindh growing area, notably Tharparkar and other areas.
Oilseed sector on the other hand did not show much change as prices of cottonseed and castor seed were again held unchanged. Til was an exception, which rose by Rs50 to 200 per 40 kg as leading exporters the forward export sales. Some types of rapeseed, including Dadu and Nawabshah suffered fall ranging from Rs5 to 25 on late selling.
Oilcakes again ruled unchanged for rapseed, while cottonseed cakes fell further by Rs5 followed by reports of a weak oil market.—M.A.