THE KARACHI wholesale commodity markets showed orderly price changes during the previous week as supply position remained fairly comfortable — thanks to steady arrivals from the upcountry trading centres.
Ready offtake was normal and there were no reports of pressure on supplies both on the essential and the raw material sectors amid moderately active trading on the essential counters.
Unlike the previous week prices of major essential items, notably wheat and sugar did not show uneven price changes and were mostly traded at the last levels.
The relative firmness in wheat was attributed to a perception that supplies to Afghanistan could resume after the withdrawal of Taliban to the south and this factor forestalled fresh selling from the commercial dealers.
The other positive development was some good news from the export front and reports of fresh enquiries from Iraq, Iran and Gulf importers.
But pulses were an exception, which came in for strong support for some types, notably masoor and gram, while others fell under the lead of urad, beetle and some others.
Identical price movements were witnessed on the rice sector where prices showed divergent trend followed by conflicting reports about the size of the export business and fresh new crop arrivals from the Sindh markets.
Although two ships are claimed to be in the Karachi port loading rice under the recently signed export deals, prices were generally guided by the size of the new crop arrival and the presence of exporters in the market, dealers said.
They said the export business of rice, which passed through a temporary interruption owing to Afghan war is now limping back to normalcy after importers have opened fresh Letters of Credit for some immediate shipments, they added.
Sugar resisted fresh selling followed by the reports of standoff on the start of the new crushing seasons after the refusal of Punjab zone mill owners.
Some of the mills in Sindh have already resumed their operations and crop supplies are reaching the market.
But the prices remained stable amid fears of short supplies if Punjab millers did not resume their operations by Nov 30, as directed by the government.
But the standoff continues as Punjab sugar mill owners are not inclined to pay more than Rs43 per 40kg to the growers as earlier agreed.
They claim the rate of Rs50 or 55 is uneconomical based on the ruling sugar prices of Rs19 to 21 per kilo.
Pulses showed firm trend and rose under the lead of gram whole, moong, gram dal, masoor and tuver and were quoted higher by Rs25 to 50 per bag amid active ready trading. Urad and beetle were an exception, falling by Rs25 to 75.
Rice sector also followed the lead of other essentials as prices of basmati and IRRI-9 Punjab were marked down by Rs25 to 50, while IRRI-6 Sindh and IRRI broken types were quoted higher by Rs25 to 70 per bag on active covering purchases made by the exporters. Others varieties were held unchanged.
Guar followed the lead of other raw materials and rose by Rs10 on renewed mill-buying. Arrivals of new crop were steady.
Cereals showed mixed trend and while bajra attracted selling and fell by Rs25, maize was quoted higher by Rs10. Jowar remained unchanged.
Oilseed sector depicted mixed trend as rapeseed and castorseed came in for active selling and were marked down by Rs10 to 25, til rose by Rs10, with cottonseed remaining pegged at the last levels.
Oilcakes depicted divergent trend amid active trading and while rapeseed cakes remained unchanged, cottonseed cakes fell by Rs17 to 20 on selling prompted by steady new crop arrivals. —M.A.