The Karachi commodity wholesale markets showed mixed trend last week as dealers played on both sides of the fence, rolling positions from the weak counters to the profitable ones.
Pulses after having fallen to new lows, owing to the persistent selling during the last two months on reports of ample imports, resisted fresh fall. In some cases prices rose modestly on the revival of demand from the Punjab traders.
While rice and sugar remained under pressure, wheat sector showed firm trend on the strength of higher export business despite the reports of a comfortable ready position.
Physical activity, however, was on the lower side, as importers and commercial dealers were not inclined to sell at the falling prices, and in most cases held on to their previous positions.
For the last couple of weeks, pulses are under pressure and had fallen sharply, in some cases to new low levels for the last couple of years.
Dealers said apart from larger imports, including from Ethiopia at lower rates, and a tough competition has benefited the consumers of this essential item.
The ruling prices in most cases have hit the five-year low levels, and as the demand is not picking up because of easy supplies, dealers did not rule out the possibility of fresh erosions in coming weeks.
But on the other hand rice sector performed well owing to steady exports and competitive world prices, both for basmati and Irri types.
According to dealers substantial exports of Irri to Afghanistan and higher demand for basmati in the Gulf countries is a major development keeping the market firm.
What is more important is that the exports to Afghanistan were billed at $165 to $167 per tonne, about $11 higher than the ruling international prices. The quantity involved was said to be 0.120 million tonnes sold to Afghanistan only through the overland route via Quetta.
Wheat followed it on rising export prospects and at higher rates, Iraq being the major buyer. Owing to fears of the US attack, Iraq is building up stock position of essential commodities including wheat to cover shortfall in case of war.
Sugar remained a victim of higher carryover stocks. Despite a price row and delay in the resumption of the crushing by Sindh mills, prices eased further on selling by the mills with a considerable decline in demand from the Punjab dealers.
Most of the Punjab mills are operating in full capacity during the peak season and market sources claim that the new crop supplies were also reaching, which in turn kept the prices under pressure, dealers said.
Sugar suffered fresh fall ranging from Rs40 to 45 per 40kg despite delay in the crushing season. Arrival of Punjab mills and local selling worked against the sentiment.
Wheat on the other hand posted a modest rise of Rs5 followed by reports that export may be banned as the entire exportable surplus has been disposed of.
Pulses recovered from previous lows on the revival of demand from Punjab dealers, and the pressure on ready supplies. Gram whole, urad and moong varieties posted gains ranging from Rs50-75, while others were traded unchanged. Guar was also held unchanged at the previous rates.
Masoor dal imported was an exception, which came in for active selling and fell sharply by Rs150 to 250.
Rice sector showed divergent trend amid conflicting reports about the exports. While broken Irri, and kernal basmati rose by Rs10 to 25 per bag, Irri-6 and Irri-9 came in for modest selling and fell by Rs15 to 45. Sela basmati also fell by Rs50.
Among the cereals, bajra and maize rose by Rs10 to 25 but jowar showed an easy trend and suffered a fall of Rs15 on selling prompted by steady arrivals from the Sindh markets.
Quiet conditions prevailed on the oilseed sector where prices of major seeds including the castor and rapeseed were traded at the previous levels, while till came in for active selling followed by the reports of fall in exporters’ demand. The net fall was of the order of Rs55 per 40kg.
Oilcakes showed divergent trend and while rapeseed cakes rose by Rs5, cottonseed cakes fell by the same amount.—M.A