Prices of most of the essential items on the Karachi wholesale commodity markets, last week, rose across the board. This was followed by the reports of pressure on ready supplies owing to slow arrivals from the upcountry market.
The increase was led by the pulses sector as the commodity was reported to be in short supply owing to the fall in imports. Leading importers were still in the process of opening new year accounts.
Dealers said the pressure on wheat supplies seems to be major cause of the price flare-up on other essential counters. Consumers were making larger buying on other essential counters, fearing further increase in the prices.
There, however, were no immediate reports of the holding back of stocks by any commercial or brokerage house, they added. Much of the activity again remained confined to the rice sector where exporters remained active buyers at the current prices. Prices of Irri types stayed firm despite steady new crop arrivals from the Sindh markets, they added.
They said private sector exporters covered their forward positions against the sale of Irri varieties to a number of countries, notably the Gulf and Africa.
Fine varieties of basmati, however, remained under pressure in the absence of strong foreign demand. Prices eased from the current high levels on selling triggered by the reports of steady new crop arrivals from the upcountry markets, brokers said.
On other export sectors, physical shipment of gram whole was maintained on the higher side as the local exporters met their shipment deadlines to Bangladesh and some other countries.
The price of gram rose from the current low levels after having fallen sharply in the last couple of weeks owing to a bumper crop. New gram crop arrivals from the lower and central Sindh markets, where the crop is early, were expected to arrive by the next month. This in turn could push the prices down on expectations of selling of the old crop by local commercial houses.
Sugar, til, gaur and rapeseed were notable in the falling line, although the decline was modest. Producers said low raw material prices were expected to cut their production costs.
Sugar suffered a fresh decline of Rs15 on renewed sellings, followed by the reports of larger arrivals from Sindh mills and falling local demand.Reports that the Trading Corporation of Pakistan had invited tender for the purchase of 1,00,000 tonnes of the commodity from local mills failed to boost the prices.
Among other essentials, wheat followed the pulses and posted a fresh increase of Rs50 to 60 per bag followed by the reports of short supply amid information of falling stocks with the Sindh government.
Pluses on the other hand showed general increase and posted gains ranging from Rs30 to 125 for gram, beetle, tuver and moong. Urad was the only exception which fell by Rs25.
On the rice sector, basmati and kernal type fell by Rs50 followed by the reports of steady new crop arrivals from the upcountry markets, while Irri-6 and Irri-9 attracted good support and posted gains of Rs30 to 50.
Cereals again showed steady trend as bajra and jowar were quoted lower by Rs10 to 15, while maize was traded at the last levels amid slow trading. Barley was held unchanged.
Guar came in for stray selling as the processors were not inclined to buy at higher levels owing to export parity problems for its end-products. Oilseeds lacked normal trading interest owing to the reports of a comfortable ready position. Prices of new crop rapeseed fell further by Rs20 to 25 on the selling prompted by the reports of steady new crop arrivals from lower Sindh markets.
Cottonseed and castor seed on the other hand stayed firm at the previous levels, while til suffered a fresh fall of Rs50 to 100 in the absence of strong demand from the exporters. Oilcake showed firm trend as both cottonseed and rapeseed cakes posted gains ranging from one rupee to Rs3.-M.A