THE Karachi commodity wholesale markets showed firm trend during the last week as prices of most of the essential items tended higher on active demand, both from the local sources and the Punjab dealers.
The last couple of weeks’ lull was broken as both wholesalers and retailers made active covering purchases amid fears of pressure on supplies.
Arrivals from the upcountry markets were also claimed to be on the lower side owing to disruption in supplies from some of the Sindh markets because of the protest processions against the US bombing on Afghanistan.
The market sources said some of the essential items are being sent in bulk to Quetta apparently for onward delivery to Afghanistan by some safer overland routes to make up the shortfall of essential items.
They base their assessment on sharp rise in prices of rice and pulses, despite the fact that the foreign shipments of both the items are at low ebb perhaps due to fresh export orders.
Not a single rice loader arrived here since the US-led coalition attacks on Afghanistan and despite steady arrivals of the new crop from the Sindh markets, they added.
But the leading commodity dealers were not inclined to entertain this idea as the borders are closed with Afghanistan and no cargo hauler will take the risk of crossing over to the border even through a safe route.
The price flare-up is because of some local factors including the fears of law and order situation because of the continued anti-US protests by the religious parties against the attack on Afghanistan.
Moreover, the sharp decline in sugar prices reflects that the price changes are largely owing to the local adverse factors rather than the panic-buying by the retailers.
According to millers the larger unsold stocks of sugar and the proximity of new sugarcane crushing season have forced the millers to lower their asking prices.
All major essential items did not show big changes partly because of the slow demand in the absence of the buyers from Punjab markets. The market rise was led by wheat, which posted a modest increase of Rs25 per 100kg bag on active mill-demand prompted by the reports of fall in the arrivals from upcountry markets. But later selling followed by the reports of steady arrivals pushed it down by Rs5 per 100kg bag. Sugar on the other hand resisted fresh fall on the revival of local demand amid fears of pressure on the supplies owing to US attacks on Afghanistan and the reports of delay in the new crushing season and suffered a sharp fall of Rs200 per 100kg bag. Sugar desi and gur also declined by Rs100 to 350 in sympathy.
Pulses showed quietly firm trend amid slow ready offtake. But all varieties including peas, gram dal, tuver came in for stray support and were quoted unchanged at the previous levels amid modest ready offtake.
Moong whole and Masoor imported type were exceptions, which rose by Rs25 to 100 per bag amid stray buying. Urad on the other hand also rose by Rs50.
The rice sector also followed the lead of other essentials as price of basmati, IRRI types posted gains ranging from Rs25 to 75 per bag followed by the reports of slow new crop arrivals from the Sindh markets.
Guar also followed the lead of pulses but fell by Rs5 to 10 as mill demand failed to pick up ahead of new crop arrivals. All types were again held unchanged.
Barring bajra, which managed to consolidate previous gains all other cereals including maize and jowar were held unchanged for want of buying support.
The oilseed sector showed firm trend as all major seeds including the rapeseed did not show any change from the previous levels, the castorseed and til came in for stray selling followed by the reports of fall in export demand. While castorseed also followed them the groundnut again remained unquoted as the arrivals from Punjab markets remained suspended.
Cottonseed came in for stray support in sympathy with firm oil and cake market and rose by Rs22 per maund and so did the til. The rapeseed followed it and rose by Rs45 to 55 per maund.
Oilcakes maintained the upward drive for cottonseed cakes but rapeseed cakes were traded at the previous levels despite big rise in the rapeseed.—M.A.