TRADING ACTIVITY on the Karachi wholesale commodity markets was relatively slow as buyers were not inclined to make fresh commitments at the rising trend of some essential items.
Wheat, rice and pulses rose in unison, despite reports of steady arrivals from upcountry markets toward the close of the week, followed by the reports of revival of demand from the upcountry traders.
Dealers said that the ready position was fairly comfortable, thanks to the steady arrivals from the upcountry markets. In the absence of strong demand from the brokerage houses, prices earlier did not show any major change on any of the essential counters.
But the subsequent support allowed most of them to close sharply higher.
Reports from the export front were fairly encouraging as prices of some of the leading commodities, notably wheat and rice rose sharply on fresh export deals and steady shipments under the previously signed agreements.
Dealers said the oversupply and higher unsold stocks being held by local traders, and relatively slackened mill demand continue to have negative impact on daily trading.
Rice and sugar on the other hand maintained a firm posture followed by active local demand and reportedly a slight pressure on the ready supplies.
Brokers said sugar prices may rise further as current talks between the sugar mills association and the ministry of commerce to export 0.2 million tons of the exportable surplus are claimed to be close to an agreement.
Crushers are eyeing Afghan market on the perception that they could beat foreign exporters on price count as they have an edge over them for more than one reason.
But whether or not the Afghan government is also that keen to import sugar from Pakistan, as their wholesale markets are said to be flooded with donated consignments of the commodity is not clear, brokers said.
Unlike the previous week, basmati, both sela and kernal and IRRI varieties came in for active support on the reports of fresh export deals indicating active short-covering by the exporters to meet shipment deadlines.
The largest rise of Rs100 per bag was noted in sela type followed by IRRI-9 Sindh, basmati, and kernal type of basmati, which rose by Rs50 to 75. IRRI-broken was an exception, which fell by Rs5 on stray selling.
Among other essentials, wheat prices rose after remaining static for last several weeks, followed by the reports of fresh export deals and steady shipments against previous deals. The net rise over the week was of Rs15 per bag of 100kg.
Pulses came in for active support at the fag-end of the week and rose by Rs130 to 150 per bag for gram and gram dal and peas, while masoor dal and masoor whole, urad and tuver were traded at the last levels.
Moong was the only exception, which fell by Rs140 per bag on active selling.
Sugar on the other hand again came in for strong support followed by the reports that Afghanistan may import a substantial quantity of the commodity from Pakistan, but ended at the previous close.
Among the cereals, maize fell by Rs10 to 25 followed by a modest rise of Rs35, but jowar was held unchanged amid slow trading.
Oilseed sector again ruled dull as the prices of new crop cottonseed cakes were not quoted despite the reports that some of the ginners in lower cotton belt have resumed their new crop operations. Rapeseed were held unchanged at the previous levels.
Rapeseed depicted firm trend because of the active demand and steady conditions prevailing in oil and cakes sectors and was quoted unchanged, while til rose further by Rs50 per 40kg and so did castorseed, up by Rs5.
Oilcakes ruled mixed as the prices of new crop cottonseed cakes were quoted higher by Rs10 to 20 per 40 kg, rapeseed cakes were traded at the last levels amid slackened mill demand and weak oil market.—M.A