After about week’s persistent rain, arrivals from the upcountry markets remained slow as cargo haulers have reportedly increased the freight rates, which in turn kept prices around the previous levels, dealers said. The ready position is still far below normal as was reflected by higher prevailing prices and may take another week or so after arrivals from the interior markets get normal, they added.
As prices of most of the essential items maintained previous levels buyers preferred to stay away awaiting fall in the prices after the supply position improves both through imports and arrivals from the upcountry markets, brokers said.
Some of the retailers from the local markets made modest covering purchases on the pulses sector where prices further rose depending on the size of quantity, they said.
They said the supply position on the pulses counter was expected to show an improvement as a ship carrying 40,000 tons of yellow peas had arrived at the Karachi port and was in the process of unloading.
Dealers said a good part of it was expected to find its way into the market and in turn could push prices of some varieties of gram lower, having a sympathetic bearish impact on the other essentials.
They said there was a relative calm on the export front as physical shipment of rice remained on the lower side as compared to previous weeks owing to shortage of the commodity.
Private sector exporters, who have achieved over a $1 billion mark in rice exports during the current season, are awaiting the arrival of the new crop from the Sindh markets.
Market sources said some of the leading exporters had already finalised forward deals for IRRI with their traditional trading partners and normal shipments were expected to be resumed by the end of the next month.
Trading activity picked up significantly after mid-week as retailers made active covering purchases on some of the essential counters, notably pulses, which caused fresh price flare-up.
Most of the price changes were reported in gram whole, gram dal and masoor dal, which posted gains ranging from Rs100 to Rs250 per bag on reports of tight ready position rather than large buying by the wholesalers.
Others including urad, beetle, moong and tuver were traded at the previous levels as supplies matched the ready demand. Upcountry demand was on the lower side, which did not allow any change in their prices.
Among the other essentials, wheat showed a fresh modest rise of Rs15, although arrivals from the upcountry markets were said to be about normal and there was no pressure on ready stocks.
Despite continued imports of sugar from various sources, there was no easing of prices as leading importers and stockists including mills released calculated stocks to keep the rates artificially high.
However, a good part of the retail demand is being met through the utility stores throughout the country at subsidised rates. Meanwhile, another vessel carrying sugar was in the process of unloading the commodity at the port.
On the rice export front, shipments against forward deals are being judiciously made to meet the deadlines. While prices of fine types including kernel and sela basmati, IRRI-6 and its broken type were marked down by Rs6 to Rs15 on lack of demand. Among the cereals, bajra came in for active selling followed by reports of steady new crop arrivals and was quoted lower by Rs150 per bag, while maize and barley were held unchanged.
Guar seeds among the industrial raw materials remained under pressure followed by reports of higher new crop owing to rain in the major growing areas of Sindh. It suffered fall ranging from Rs25 to Rs50 per bag.
Oilseed sector stayed quiet as ready position was said to be fairly comfortable thanks to steady arrivals from the upcountry markets and slack mill demand.
Prices of major seeds including cottonseed, rapeseed, and castorseed were firmly held at the last levels but til rose by Rs100 on active demand from the exporters.
Oilcakes posted a fresh sharp rise of Rs40 to Rs45 per bag on reports of short supply but rapeseed cakes were quoted unchanged at the previous levels.—M.A.