The Karachi wholesale commodity markets passed through another quietly mixed week as leading brokerage and commercial houses remained conspicuous by their absence.

Some changes, however, were witnessed on some essential counters where reports of oversupply pushed the prices further lower but the physical business remained at a low ebb as the commercial houses kept to the sidelines anticipating further fall.

Arrivals of new crop from the Sindh wheat belt were on the higher side of the market’s absorbing capacity and the consequent fall in prices.

Dealers said over the last couple of weeks since new crop stocks have started arriving, prices of wheat have steadily declined the cumulative loss being about Rs70 per 100kg bag.

The pace of arrival was so brisk that reports of fresh export deals of the last year’s exportable surplus failed to check decline in prices, they added.

Sugar did not follow it owing to slow arrivals. Reports that the production of sugar has touched the high mark of 2.6 million tons and predictions of a total crop figure of over 3 million tons, could upset the prevailing price pattern.

But slowdown in arrivals and holding back of stocks by local dealers caused shortage of the commodity and consequent increase in prices after two weeks of persistent decline. Reports on an increase in import duty to 30 per cent also proved a positive development.

The general consumer may not be benefiting from the persistent fall in wholesale prices, the weakness is sure to spillover to the retail level in due courses, says a broker.

But some others said reports that the TCP is expected to buy 0.200 million tons of sugar from the mills for export purposes also changed the market outlook at least for the near-term, he said.

There was a relative quiet on other essential counters, barring a couple of changes on the pluses sector where imported types came in for active support from the Punjab dealers.

Unlike the previous week, price changes on this counter were modest and in no way reflected pressure both on the prices and the ready positions.

Basmati varieties on the other hand maintained their firm trend for the fourth week in a row, reflecting strong presence of foreign support and reports of fresh export deals. Broken basmati rose by Rs200 per bag. The IRRI types were traded at the last levels.

Sugar white came in for strong support from the Punjab dealers and was quoted higher by Rs75 to 95 per 100kg bag. While gur rose by Rs50, with desi sugar remaining pegged at the last levels. Pluses again showed mixed trend. While moong and tuver posted fresh gains of Rs25 to 213 per bag, peas, masoor and masoor dal suffered fall ranging from Rs100 to 250 per bag on renewed selling.

Wheat maintained its downward drift as prices fell further by Rs50 to 75 for both old and new crop owing to oversupply.

Guar also came in for stray selling followed by the reports of steady arrivals from the upcountry markets and were marked down y Rs5 to 15 per bag.

Cereals remained under pressure because of steady arrivals and as a result prices of jowar and bajra were marked down by Rs5 to 50, while maize and barley were again traded at the previous levels amid slow trading.

Oilseed sector showed firm trend as prices of rapeseed rose by Rs15 to 40 on renewed buying followed by the reports of steady oil and cake market. New crop arrivals were slow. Cottonseed lacked normal trading interest as ready position was comfortable and were again quoted unchanged amid slow trading. Til and castorseed followed them and held on to the last levels. Oilcakes ruled steady as prices of rapeseed and cottonseed cakes posted gains ranging from Rs5 to 7 respectively followed by the reports of steady demand from the general consumer.—M.A.