FAIRLY active trading was witnessed again on the Karachi wholesale markets during the preceding week as commercial and brokerage houses covered their short positions both at the decline and the rise.

Unlike previous weeks, most of the price changes on the essential counters were on the higher side followed by reports of tight ready position and market talk of hoarding of some commodities by leading stockists. Much of the activity remained confined to some essential counters under the lead of pulses and wheat followed by reports that private sector exporters were in the market and were covering their forward sales to various countries.

The market upturn in the last week was led by the pulse sector under the lead of gram and gram dal followed by reports of short supply, which in turn had sympathetic bullish impact on counters of other essentials.

The notable feature of the week was sharp rise in prices of guar seed, which had assumed the role of a major export item owning to higher exports of its byproducts.

The cereal sector again remained under pressure on renewed selling and fell under the lead of maize and bajra but on the other hand some major oilseeds, including rapeseed and castor seed came in for active support and rose modestly.

Arrivals from upcountry markets, mainly from Punjab, were on the lower side of the weekly average and caused price flare-up in some of the sectors amid active trading.

Market sources said private sector exporters of wheat and rice were among active market players, who caused price flare-up on some counters followed by reports of absence of leading sellers.

They said prices were expected to go further higher during the next week as leading brokerage houses were playing on the sides of the fence, which caused shortage of some essentials.

Much of the price changes were recorded on the export counter partly because of reports of short supply and partly to active short-covering by leading exporters.

Wheat: Active trading was witnessed in this sector as the local flour mills and private sector exporters remained major players and lifted large quantity of the commodity both at the dip and the rise, notably by exporters who were obliged to pay higherprice to meet their shipment deadlines.

Sugar: On the other hand sugar remained a bit dormant, although prices did rise at the retail level despite official assurancesthat stock position was fairly comfortable to meet demands during the holy month of Ramazan. Prices showed modest rise of Rs150 at 68,50 per kg.

Pulses: The activity in this sector was normal and supply position comfortable thanks to steady imports from various sources during the post-budget weeks.

Rice: Stocks of the previous crop were on the lower side as bulk of it had already been exported. Stray shipments were beingmade by some exporters who had built up higher stocks to meet their export commitments before the arrival of the new crop.

Market sources said the crop had been sown in major areas of both Sindh and Punjab but complaints were reaching here about its short supply mainly at the tail end.

However, earlier sown crop in some of the areas was expected to be on the harvesting stage during the next couple of weeks and might be available by the middle of August.

Cereals: Unlike previous weeks, cereals remained under pressure on selling triggered by reports of steady arrivals from Sindhmarkets. Maize and bajra led the list of prominent losers, falling by Rs50-100 per 100 kg.

On the other hand, barley came in for active support by some exporters and was quoted higher by Rs50. Slow arrivals from upcountry markets was another positive factor.

Oilseeds: The oilseed sector, on the other hand, showed quietly steady trend as prices of major seeds, including rape seed, cottonseed and til were firmly held at previous levels as supply was reported fairly steady.

But castor seed was an exception on reports of higher export demand and was quoted higher by Rs100-150.

Cotton: After early rise, cotton prices were quoted lower later in the week but the on-balance close was at the previous levels.

The arrival of new crop started in ginneries of lower Sindh and central Punjab but prices of both phutti and lint were said to be on the higher side at Rs3,150-3,200 per 40kg or around 8,650 per maund.

Oilcakes: Prices of cottonseeds were again not quoted as the new crop arrival was not reported by ginners. Rapeseed cakes were held around the previous levels.—M.A.