An active two-way physical trading was witnessed as leading dealers short positions on the essential counters and sold where unsold stocks were above the market demand, dealers said.
As a result, prices of some of the essential items fell from the previous levels under the lead of pulses, while some other counter rose as pressure on supplies continued, they added.
Arrivals from the Sindh markets, notably of new crop sugar were low as tussle between the growers and millers over the prices continued causing interruption in the crushing started late last month, brokers said.
Reports of temporary suspension of operations by the Sindh and Punjab millers owing to higher prices being demanded by the grower pushed prices of the commodity further higher at the retailers level, they said.
According to reports reaching here, growers are said to have demanded higher prices ranging from Rs60-70 per maund, while crushers claim their demand was well above the parity levels in a competitive market and the consequent stalemate, they added.
They feared, sugar prices at retailers’ end may rise further if the supplies of new crop from the mills are not released well on time to the wholesale markets.
On the other essential counters, wheat prices rose further though modestly as release of stocks from the official sources is claimed to be on the lower side. Moreover, tight ready market was another aiding factor.
Some varieties of pulses also remained under pressure on selling prompted by reports of larger imports by the commercial importers. Dealers said fall in local demand also depressed prices.
On the export front, shipment of rice and others commodities were maintained on the higher side, apparently to meet the deadlines before the year is out. Rice loaders remained in the port loading the commodity daily.
While the tussle between the growers and mills remained unresolved till the end of the trading week, after mid-week active two-way trading was witnessed on some of the counters.
While there was no trading in sugar on the wholesale market owing to pressure on supplies from the mills and prices were again quoted at the previous levels, some of the other essential items showed modest increase.
Wheat was notable among them, which again rose by Rs20 per bag as supplies from the local market remained a bit costly. unlike the previous weeks, the increase was a bit higher.
Pulses on the other hand showed quietly east trend as prices of masoor and masoor dal suffered sharp decline on selling triggered by reports of larger imports and cheaper supplies from India.
The largest decline of Rs500 per bag was noted in masoor dal followed by masoor whole which was marked down by Rs50. All other varieties including moong, gram whole and gram dal were again traded at the previous week’s levels.
Prices of all varieties of rice including sela and kernal varieties of basmati were held unchanged. IRRI varieties followed them despite larger physical shipments to foreign countries. IRRI broken and kernal type of fine basmati were an exception which rose by Rs5 and Rs200 per bag respectively.
Owing to a bumper crop of IRRI varieties, private sector exporters are meeting their shipment deadlines to honour their export commitments well in time. But the interesting feature was that prices remained stable around the previous levels for the fourth week in a row.
Among the major industrial raw materials, guar came in for renewed selling prompted by reports of higher new crop arrivals and was marked down by another Rs100 per bag. Others were quoted unchanged.
Cereals on the other hand showed firm trend as prices of jowar and bajra were quoted higher by Rs25 to 50 per 40 kg, while maize remained pegged at the last levels despite larger new crop arrivals.
With the exception of castor seed which suffered a decline of Rs25, followed by reports of larger new crop arrivals and falling demand from the crushers, all other major seeds were held unchanged under the lead of cottonseed, rapeseed and til.
Oilcakes again showed divergent trend and while rapeseed cakes showed a fresh fracional fall of Rs2, cottonseed cakes rose by Rs10 on active mill and local consumer demand.—M.A.