Dealers said, arrivals were normal for the first week after the Eid holidays, which did not allow major price changes on any of the counters as daily demand was steadily met. Some of the industrial raw materials on the other hand came in for fresh covering purchases by the processors but increase was modest,reflecting pressure on supplies, they said.
After having fallen during the last couple of weeks, guar seed prices rose from the previous levels partly owing to revival of mill demand and partly to reports of a short crop in the Sindh belt, they said.
Processors claim owing to higher local prices, they are facing problems on the export front for the guar-based by products as foreign buying are not inclined to match their f.o.b prices to the prevailing local ones.
But on the other hand, rice another major export commodity did not show much change in the ruling prices despite steady physical shipment of the commodity to various foreign destinations.
For the last couple of weeks, prices of both IRRI and fine varieties are holding on to their previous levels followed by report of a bumper crop for the second season in a row. According to official sources the size of the current crop has been revised upward to 5.5m tons from the previous 5.2m tons, bulk of which had already been sold to foreign buyers.
On the sugar front, relative calm prevailed amid reports that prices at the retailers end are well above Rs30 per kilo despite resumption of sales to the local dealers by the mills. Market sources said despite reports of fresh import of about 0.4 million tonnes from India or some other countries, to make up the local crop shortfall, there are no indications of decline in prices.
Some others said arrivals of stocks from the mills are on the lower side of the weekly average, which continue to fuel price flare-up at the retailers end. Mill owners said growers have increased the selling price of sugarcane well above Rs60 per maund and after adding conversion costs, prevailing wholesale prices are competitive, while their weaker link claim they are selling the commodity at a loss.
For the second week in a row, pulses came in for active support after mid-week as reports of short supply and rising demand pushed prices further but ready offtake was reported light.
Bulk of the support originated from retailers amid reports that importers have slowed down release of imported stuff to the open market trading in an apparent effort to push prices further higher.
Barring masoor imported from India, which suffered fall of Rs200 per bag, all other varieties were quote unchanged at the last levels under the lead of gram whole and gram dal, tuver and urad.
Moong whole and moong dal were an exceptions,which came in for active support followed by reports of slow arrivals from the upcountry market and finished with gains ranging from Rs.25.00 to 125.00 per bag.
Despite higher physical shipments to foreign countries,IRRI types both IRRI 6 and IRRI-9 came in for active selling followed by larger arrivals from the Sindh markets.Reports of a bumper crop was another destablising factor.Both fell by Rs. 10.00 to 50.00 per bag.
Fine varieties including basmati, sela and kernal varieties were, however, traded at the last levels followed by reports of steady exports to Gulf and some European destinations.
Wheat pries remained stable around the previous level barring a fractional decline of Rs5 in the local prices as supplies matched the local mill demand. Report of fresh import to make a buffer stock also did not allow increase in prices.
There was relative quiet on the sugar market and the commodity remained un-traded for the entire week. However, prices are quoted around Rs.34.00 per kilo as new crop from the local mills are said to be too small to check any price flare-up. Industrial raw materials on the other hand remained in active demand and rose further by Rs.100.00 per bag for guar seed amid reports of a short crop but ready off-take was modest as processors were not inclined to buy at the higher rates, dealers said. Cereals lacked normal trading interest amid reports of steady arrivals from the upcountry markets and slow local demand. Prices of maize, jowar, bajra and barley were firmly quoted at the previous levels.
After several weeks listless trading, oilseed sector came in for strong support under the lead of rap-seed, which posted gains ranging from Rs.25.00 75.00 for all the varieties partly on higher oil and cakes markets and partly to short supply.
Til followed them on revival of export demand and rose by Rs50 while castorseed, cottonseed and some other varieties were traded at the last levels Amid dull trading.
Oilcakes followed them as both cottonseed and rapeseed cakes were quoted higher by Rsl5 to Rs8 in sympathy with higher seed prices and active demand from the extraction plants.—-M.A