The Karachi wholesale commodity markets greeted the holy month of Ramazan with a stable price outlook, as an increase on some essential counters was orderly.
But there was no price flare-up on any essential counter as the supply gaps were readily filled-in, owing to steady arrivals from the upcountry markets.
The price of new crop rice and wheat rose modestly followed by the reports of fairly steady export business, but as there was no pressure on the ready supplies or pre-Ramazan panic-buying, prices remained stable and rose on some counters where the demand outpaced the supplies.
Some of the essential items, including sugar and some varieties of pulses, came in for stray selling followed by the reports of fairly-comfortable ready position, thanks to steady arrivals from the Sindh markets.
Dealers said the notable feature was that there were no reports of holding back of stocks by the leading commercial or brokerage houses, which in turn kept the prices stable.
However, sugar remained under pressure as the mills continued to liquidate their long positions caused by the large unsold stocks from old crop.
According to the Pakistan Sugar Mills Association, their members still hold an unsold stock of half a million tonne of the commodity from the previous crop, they added.
A fortnight delay in the start of the new crushing seasons, possibly from the last week of the current month, did not alter the price situation which continued to slide because of the lack of support.
Reports that the Sindh government will hold open auction for about 0.2 million tonnes of wheat during the next couple of weeks to clear the backlog, aided the prevailing price trend for the second week in a row.
Wheat is leading among them, which has been in active demand for the last couple of weeks and in the process prices remained stable and rose modestly amid slow ready offtake. It was quoted higher by another Rs10.
Although, export shipments are still being made under the previous export contracts, prices eased modestly on selling by the local commercial houses owing to the lack of fresh enquiries from private sector exporters.
Sugar on the other hand resisted fresh fall on steady local demand followed by the reports of delay in the new crushing season, which is expected to start late this month. Fine type rose by Rs20, while inferior one fell by Rs70. Gur also rose by Rs100 but desi sugar was held at the last levels.
The new rice crop from the Sindh rice belt is steadily arriving for the second consecutive week but prices showed mixed trend. Irri-9, and basmati kernal were again quoted higher by Rs25 to 50 and so did sela type, which rose by Rs100, while Irri-6 rose by Rs5 per bag.
Pulses showed mixed trend amid alternate bouts of buying and selling. While masoor whole and masoor dal and urad posted gains ranging from 50 to 100, gram and beetle and urad suffered fall ranging from Rs50 to 100.
Guar came in for renewed selling in the backdrop of slackened demand from the local processors and suffered a fall of Rs25 for all varieties.
Cereals showed mixed trend as jowar and bajra suffered sharp fall of Rs20 to 150 per bag on selling followed by the reports of new crop arrivals, while maize rose by Rs20.
Oilseed sector ruled steady as the prices of rapeseed were firmly held at the last levels followed by the reports of firm oil markets. The new crop cottonseed were again not quoted owing to the absence of arrivals from the Sindh ginneries. The castorseed followed them and remained pegged at the last levels.
Oilcakes came in for active selling and prices of both cottonseed and rapeseed cakes were marked down by Rs5 to 15 per bag on selling prompted by the reports of larger arrivals.—M.A