After last week’s relative calm on the Karachi wholesale commodity markets owing to easy supply position, most of the essential items were traded at higher rates, in some cases sharply higher amid active ready off-take.
Dealers said that apart from pressure on ready supplies owing to considerable decline in arrivals from upcountry trading centres, the other destabilising factor was fall in demand.
They said fall in arrivals was attributed to holding back of stocks by leading traders in upcountry markets mainly in Sindh which led to current price flare-up.
Lower imports during the last couple of weeks followed by hoarding by some stockists, were the other factors leading to an undue price rise on some counters.
Pulses led the market advance under the lead of masoor and moong followed by reports of slow arrivals from wholesalers and leading importers. As a result, sympathetic bullish impact was also witnessed on other sectors barring wheat and sugar.
The notable feature of the week was a fresh rise in prices of guar seeds, owing partly to speculation about its supplies and partly to hoarding of the new crop at the growers’ level. It was last quoted around Rs10,500 per 100 kg, an all-time high so far.
Another major export item, barley also came in for renewed support despite reports of comfortable supplies, mainly from Balochistan. Cereals followed it under the lead of maize, jowar, and some others and their prices shot up from previous levels followed by reports of slow arrivals and higher local demand.
Wheat: Owing to oversupply, the activity on this counter was slow and much of buying was reported on mill accounts. Prices, therefore, remained stable around the previous levels despite far excess supplies.
Sugar: Market sources said sugar prices remained on the lower side after reported problems in payment of sale proceeds against the sale of 0.01million tons of the commodity against the tender of 0.02m tons.
While prices of white sugar were modestly lower around Rs51 per kg on the wholesale markets, retail prices were quoted higher at around Rs53 per kg on area to area basis. Desi sugar remained unchanged while gur was quoted lower by Rs200-500 per 40 kg.
Pulses: Pulses, on the other hand, came in for fresh demand and were sharply higher on pent up demand. The prices rose sharply higher under the lead of moong, masoor, urad, gram and its dal.
Rice: Much of the activity remained confined to IRRI type rice, which was quoted lower under the lead of Irri-6 on reports of revival of foreign and local demands and exports. Prices of Irri-6 crop were quoted modestly lower on selling by local stockists and in absence of demand from private sector exporters.
Prices of basmati varieties including kernel and sela lacked active support by exporters and were held unchanged.
Cereals: This sector again showed sharp increase under the lead of maize, jowar and bajra on active support after decline in arrivals from Sindh markets. Maize led the list followed by others, while jowar was quoted unchanged amid stray business. The final closing rates were unchanged.
Guar seed also followed it as some exporters sold their stocks. It was quoted sharply higher amid active trading.
Oilseeds: This sector, on the other hand, showed easy trend under the lead of rapeseed on selling reported by rise in new crop arrivals. Its prices were quoted higher by Rs25 per bag. However, fresh decline in cottonseed was averted as demand showed a modest increase and prices were maintained at the last levels.
Cotton: Cotton prices maintained their recovery trend from the previous lower levels on active spinner buying and were quoted higher despite selling followed by reports of rise in arrivals.
But late mill support at lower rates pushed prices higher, and were quoted around Rs6,000-6,100 per maund indicating fresh upward drive.
Oilcakes: Rapeseed cakes showed modest rise and along with cottonseed cakes ended the week on a lower note amid active local selling. The rise was noted in cottonseed cakes after several weeks of fall on oversupply.—M.A.