The Karachi wholesale commodity markets showed firm trend last week as prices of essential items generally rose sharply, followed by the reports of short supply on some counters.

Most of the upward price changes were confined to pulses and rice sectors as the rising demand from the Punjab dealers could not be met owing to the slow arrivals from Sindh markets.

Dealers attributed the early increase in pulses to the slow imports from foreign countries owing to the proximity of the national budget. Anticipating some changes in import duties, importers cut their monthly imports, which in turn pushed the prices higher.

However, after mid-week supply position improved and as a result prices of some types suffered decline at the fag-end of the week under the lead of masoor and its dal.

After remaining stable for last couple of weeks, most of the imported stuff of pulses was sold at much higher rates as the pressure on supplies and the strong demand from Punjab traders provided them a convenient reason to raise the prices further higher, they added.

The price flare-up on the rice sector was caused by the short supply and the revival of foreign demand, notably for IRRI varieties, which remained in strong demand throughout the last week.

Although, there were no reports of fresh export deals with any of the leading importing countries, market sources said some of the private sector exporters have managed to make forward deals with their traditional trading partners.

As there were no shipment schedules during the last couple of weeks, no rice loader from any country sailed into the port during the week but some exporters claim container-load shipments of both IRRI and basmati to some countries. Among other essential commodities, wheat stayed weak, unlike the previous weeks, price declines were modest and there were instances of stray buying at the lower levels.

Sugar, which has been ruling weak over the last one month followed by the reports of larger unsold stocks resisted fresh decline on the revival of demand from the commercial exporters.

Reports that the millers will sell 50,000 tons of the commodity to Afghanistan during the next couple of months also forestall further decline in prices, brokers said. It was quoted higher by Rs15 to 25 per bag.

Guar remained in modest demand as some of the local processors covered their nearby positions against export orders. Prices again remained unchanged after early modest rise.

Rice sector again showed firm trend amid slow trading as bulk of the business was done at higher levels. IRRI-6 and IRRI-9 types and basmati were traded at the higher level on active support extended by the exporters, but fine varieties, including kernal and sela types of basmati were firmly held at the previous levels.

Cereals showed quietly steady trend as a result the price of maize and bajra were quoted at the previous levels, while jowar came in for stray support and was marked up by Rs5. Barley was also held unchanged.

Oilseed sector again showed firm trend as the price of rapeseed and castorseed posted fresh gains of Rs10 to 35 for Nawabshah and Dadu types in response to further increase in the prices of oil and oilcakes.

Owing to short supply, prices of cottonseed were not quoted on trading board for the last one month and so were the groundnut. Castorseed Punjab type remained under pressure and fell by Rs5.

Til came in for active buying from some exporters and rose by Rs25 to 30 per 40kg despite steady arrivals from Sindh markets.

Oilcakes depicted firm trend amid reports of short supply. Prices of cottonseed were quoted further higher by Rs7 to 10 but the rapeseed cakes were traded at the last level, despite sharp increase in the rapeseed prices.—MA