QUIETLY steady conditions were witnessed on the Karachi wholesale commodity markets during the last week as there was no major change in the post-Eid holiday trading.
Prices of some essential items, however, did show modest increase under the lead of pulses and rice types.
As was speculated, the demand from the Punjab dealers remained dormant, which generally pushes local prices higher. During the pre-Eid holiday sessions, most of them have built up fairly large stock positions and stayed away.
Indications are that leading among them will resume normal trading possibly by the next week, which in turn will accelerate the pace of physical business, dealers said.
The arrivals from the upcountry markets, notably from the Sindh trading centres were normal as most of the cargo haulers opted for general cargo after transporting back the remaining sacrificial animals to their upcountry destinations, they added.
Prices of some varieties essential items have risen sharply during the pre-Eid holiday sessions as cargo haulers have raised their freight rates, which in turn caused pressure on ready supplies and the consequent increase in prices.
Unlike the previous week, prices of most of the essential items remained stable as supply position improved significantly thanks to steady arrivals from the upcountry markets.
The notable feature that fine types of basmati came in for strong support from some leading exporters, who covered their forward sales for nearby shipments against firm export orders.
Exporters say export orders for basmati are pouring in from Europe and some untraditional sources, which have caused the recent price flare-up.
A couple of rice loaders have been in the port during the week and loaded IRRI types for Bangladesh and some Near East destinations.
As a result, fine types were mostly traded at the higher level as bulk of the support originated from the foreign sources, mostly Europe.
Prices of basmati rose by Rs50 to 75 per bag, the largest rise of Rs175 being in sela variety, while kernal type was traded at the last level.
IRRI Punjab type was again not quoted, while IRRI-9 Sindh remained unchanged at the last level but IRRI-6 rose by Rs5, IRRI broken remained under pressure and ended sharply lower by Rs75 per bag.
Reports of fresh export contracts and strong presence of exporters proved an aiding factor, which did not allow prices to fall from the previous levels and stay stable.
Sugar followed the rice sector followed by reports of slow arrivals from the mills and as a result, prices were, however, did not show any change as supplies matched the ready demand. Gur on the other hand rose by Rs25, while desi sugar suffered a decline of Rs100 on selling followed by reports of steady new crop arrivals.
Pluses showed quietly mixed trend amid slow trading. While urad and moong imported types tended higher by Rs25 to 250 per bag, masoor suffered a fresh decline of Rs50 per bag on selling prompted by slack demand from the upcountry dealers.
Masoor, dal, gram whole and dal and beetle on the other hand attracted stray support but finally ended at the previous levels amid slow trading.
Despite reports of active export business, wheat prices remained stable at the previous levels as there was no pressure on the ready supplies, thanks to steady arrivals from the upcountry markets.
Cereals came in for heavy selling owing to larger arrivals and were quoted lower by Rs 30 to 65 for jowar but the biggest decline of Rs160 to 225 was recorded in maize. Oilseed sector remained dormant owing to slack demand from the crushers and as a result,major seeds including rapeseed and cottonseed were traded at the last levels.
Rapeseed Mirpurkhas variety and castorseed Punjab variety attracted selling and were marked down by Rs20 to 40 per 40 kg, while til rose by Rs20 to 30 on active demand from the exporters.
Oilcakes again showed mixed trend amid active trading. Cottonseed cakes rose by Rs5, while rapseed cakes came in for active selling owing to weak oil market and were quoted further lower by Rs10.—M.A