PHYSICAL activity on the Karachi wholesale commodity markets last week remained slow as commercial houses kept to sidelines most of the time amid reports of steady arrivals from upcountry trading centres.
But reports that 0.1 million tones of sugar will be exported to India was welcomed by millers amid hopes that it could lead to more exports in coming months, industry sources said.
The news led to a modest rise in prices and millers hoped it would have a positive impact on industry’s financial health during the current season.
The TCP had already purchased 0.2 million tones of sugar last month after two tenders at various rates and the industry was awaiting more tenders from the TCP as it intended to make a buffer stock of 0.4 million tones, dealers said.
Market sources said as the ready supply position of almost all essential items was fairly comfortable there were no reports of speculative buying or selling on any counters of essentials.
Industrial sector, however, remained a bit tight on active support extended by the management. But after an early rise, prices mostly settled around previous levels amid active ready off-take, they said.
On the export front, shipments of rice under the previously signed agreements remained on higher side as a rice loader sailed out with a consignment of 14,000 tons to the Gulf, dealers said.
Shipments of other export items were also fairly steady under the lead of cereals and other industrial items, they said.
Among other essentials, gram and its dal were traded around previous levels as supply position was fairly comfortable. New gram crop from Sindh is due by next month.
But wheat again lacked normal mill support and in the absence of export demand owing to higher local prices and oversupply, prices remained unchanged, dealers said.
They said there was relative calm on the sugar market despite oversupply but prices stayed around previous levels. However, export deal with India was expected to push prices modestly higher in coming weeks.
Wheat: Activity on this sector was slow and lacked normal support barring mills. Prices, therefore, remained unchanged and were quoted around previous levels.
Pulses: Pulses, on the other hand, came in for active bouts of buying and selling and were quoted mixed under the lead of gram and its dal but moong, masoor whole and dal and some other types were firmly held at previous levels.
The relative firmness was attributed to steady imports and pressure on ready supplies. The increase in upcountry demand was another bullish factor.
Rice: Much of the activity remained confined to Irri types, which were quoted modestly higher under the lead of Irri-6 type and remained unchanged for Irri-9 on reports of revival of foreign and local demands and exports. Prices of new crop Irri-6 were quoted modestly lower on selling by some local stockists in the absence of demand from private sector exporters.
Cereals: This sector showed firm trend under the lead of maize, jowar and bajra on active support triggered by reports of fall in arrivals from Sindh markets. Maize led the list followed by others, while jowar was quoted unchanged at previous levels. The final closing rates were unchanged.
Among other cereals, barley stayed firm followed by reports of active buying by some leading exporters but was quoted unchanged at previous level owing to steady arrivals from Balochistan and fulfillment of local demand.
Price of guar seeds rose further by Rs300-400 as some dealers covered positions and it was quoted higher amid active trading.The fall in arrivals from upcountry markets was the aiding bearish factor.
Oilseed: This sector, on the other hand, showed easy trend under the lead of rapeseed on selling reported by rise in new crop arrivals, and prices were quoted at previous levels.
Fresh decline in cottonseed was averted as demand showed a modest increase and prices were maintained at the last level.Prices of other major oilseeds, including cottonseed were held unchanged barring til which recorded fall. Castor seed, on the other hand, rose by Rs50 per 100kg.
Cotton: Prices of cotton could not maintain its recovery trend as prices fell by Rs200 per maund from the previous lower levels on active ginner selling and were quoted lower despite mill buying followed by reports of increase in arrivals.
Oilcakes: Both rapeseed and cottonseed cakes showed no change and both ended the week on a steady note amid active local buying. The steadiness was noted in cottonseed cakes after several weeks of decline owing to oversupply. —-M.A.