Prices of most of the essential commodities on the Karachi wholesale markets last week posted fresh to modest fall partly on renewed selling by wholesalers and partly to steady arrivals from upcountry trading centres.
However, some commodity dealers failed to pinpoint the specific reasons behind the steep decline despite reports of crop losses in lower Sindh owing to rain and floods last month.
Some said that apart from steady arrivals from upcountry, the other factor which contributed to the fall was a considerable decline in demand at the retailers’ level.
All essential commodities, mainly wheat and pulses, remained under selling pressure throughout last week and fell sharply, they added. But basmati and Irri types on the rice counter came in for active support and ended with sharp gains ranging between Rs700 and Rs750 per 100 kg bag on reports of short supply.
On the other hand, sharp fall in gram was attributed to larger imports amid falling demand, they said and added falling consumer demand mainly bulk consumers was said to be the chief reason behind the fall.
Some industrial raw materials came in for active support and rose under the lead of oilseeds mainly of edible oils. Guar seed also rose by Rs200-300 to set a new record.
Cotton recovered from the early slide partly on active mill demand and partly to fall in arrivals of phutti into ginneries as growers were almost dumping the commodity amid fears of fresh decline in prices. It was quoted higher by Rs200 per maund at Rs6,200.
Wheat: In the absence of fresh mill buying, activities on this counter remained slow. Arrivals from upcountry markets mainly from Punjab was on the higher side, which kept prices depressed throughout the week.
The net fall over the week was Rs40 per bag of 100kg but analysts said slack demand from relevant quarters could push prices further down during next week.
Sugar: This sector lacked normal interest at the wholesale level and as a result prices suffered modest fall. On the other hand, at retail level it was said to be a bit fast. Gur, however, came in for renewed buying and was quoted unchanged on late selling.Prices closed around Rs7,000-8,500 followed by reports of improved supply. Desi sugar consolidated the previous gains at Rs8,500 per 100 kg.
Pulses: Dealings in this sector was fairly active amid reports of comfortable supply position in the ready section. Prices were again quoted lower under the lead of gram and gram dal, which suffered fall ranging between Rs200 and Rs450 per bag. Other types followed them but demand at retailers’ level was on the lower side.
Rice: Prices of basmati and Irri-6 were quoted lower on selling by some stock holders in the absence of demand from private sector exporters. The net fall over the week was Rs50-100 and Rs300 per bag respectively. Arrival of new crop from Sindh was further delayed while stocks of old crop had exhausted.
Some dealers said unsold stocks of the old crop were on the lower side and were held back to be sold at higher rates before the arrival of new crop. Prices of basmati varieties including kernel and sela lacked active support by exporters and were held unchanged.
Cereals: This sector showed steady trend under the lead of maize and bajra on buying triggered by reports of fall in arrivals from Sindh markets. Maize led the list followed by bajra, while jowar was firmly held unchanged.
Barley attracted good support by some exporters and was quoted higher by Rs200 amid active trading. Slow arrivals from upcountry markets were another aiding positive factor.
Oilseeds: This sector, on the other hand, showed steady trend under the lead of rapeseed, which were quoted higher by Rs75-100 on strong mill buying followed by reports of short supply.
Prices of other major seeds, including cottonseed, were held unchanged barring til which fell by Rs50 per 100 kg from its previous level as supply was reported short.
Castor seed was an exception on reports of higher export demand and was quoted modestly higher amid active trading.
Cotton: Prices earlier fell sharply lower followed by reports of increase in arrival of phutti into ginneries followed by slack demand and were quoted higher between Rs500 and Rs600 per maund, the highest rate being Rs6,650 per maund.
Arrival of new crop in ginneries was on the higher side which caused selling by ginners. In central Punjab prices of both phutti and lint were said to be on the higher side.
Oilcakes: Prices of cottonseeds were quoted higher as new crop arrivals were said to be on the lower side owing to rain and floods in Sindh yielding pressure on supplies. Rapeseed and cottonseed cakes showed modest rise of Rs25 per maund.—M.A.