The other stabilizing factor was the absence of leading speculative traders and brokers who most of the time kept to the sidelines anticipating some negative development on the supply front.
However, it was interesting to note that despite a considerable decline in the ready demand, prices did not ease as commercial houses held on to their unsold positions.
Physical offtake on most of the essential counters remained light as commercial traders and brokers were not worried over supply and mainly played safe. They did not even try to build up long positions on any counters.
Dealers said that there was a relative quiet on the sugar sector apparently due to the reports of fresh arrivals of the imported stuff, both from India and some other countries.
But it was not clear whether or not the prices at retailers’ end fell in line with the increase in supplies. The rush of buyers at the Utility Stores was gradually easing, indicating that the previous panic was now fading out, they said.
However, prices were not uniform and were different from one to another city area depending on the whims of the retailers and buyers. However, the ready offtake remained slow as end-product users did not try to go beyond their immediate needs hoping further decline in prices, they added.
Wheat prices on the other hand remained under pressure despite reports of export of the surplus stock by the government. Owing to oversupply and falling mill demand there was a pressure on the prices.
Moreover, selling was also prompted by reports that the new crop was a bumper and will start arriving in the market by next month. This would further ease the prices.
On the export front, rice remained fairly steady owing to a judicious combination of both local and foreign demand. The steady physical shipment of the commodity to various export outlets did not allow prices to fall from the previous level despite a bumper crop.
However, the post-mid week trading showed some major changes on essential counters on selling by some leading brokerage houses followed by the reports of steady arrivals from the upcountry markets.
Wheat remained under pressure and led the market decline as some stockist sold in panic fearing further fall once the new crop from lower Sindh arrived.
Decline in mill-demand was another negative factor resulting in fresh fall ranging from Rs20 to 60 per bag in slow trading.
Pulses on the other hand showed mixed trend. Masoor whole was traded higher by Rs100 per bag, gram whole and dal fell by Rs25 each with all other types remaining pegged at the last levels.
On rice sector, prices remained fairly steady despite larger physical shipments against the forward deals. While fine types remained unchanged at last the levels, IRRI-6 rose by Rs15 to 25, while its broken variety fell by Rs10 to 20 per bag.
Among fine types basmati rose by Rs50, while kernal and sela types were held unchanged amid reports of pick up in export demand to some European countries.
Some major industrial raw materials lacked normal buying support and were held unchanged barring guarseeds which rose by Rs50.00 per bag on the reports of slow arrivals from upcountry markets.
Cereal sector lacked normal trading interest owing to comfortable ready position. Prices of bajra remained depressed thanks to steady arrivals and fell by Rs35 to 75 per bag amid active selling.
But on the other hand, maize and barley were traded at previous levels and so did other varieties amid slow ready offtake and easy ready positions.
Oilseed sector showed quietly steady trend as supplies matched the local demand of crushers. Prices of cottonseed, rapeseed, til and castorseed were held unchanged at previous levels amid slow ready offtake by the mills.
Oilcakes suffered sharp fall of Rs50 per 40kg on the selling by local dealers followed by the reports of a weak market. On the other hand, cottonseed cakes were firmly held at last levels.—M.A.