The prices of essential items on the Karachi wholesale commodity markets again showed divergent trend last week as conflicting reports about the supply position worked on both sides of the underlying sentiment.

Dealers said arrivals from the upcountry trading centres were normal, but they failed to check the price decline on some essential counters, including the rice sector, despite steady physical shipments against the export contracts signed earlier.

They said pulses had shown signs of improvement after the two-month of steep declines, and resisted further falls on account of a considerable rise in the ready demand, and the depleting stocks.

“Though the importers are dumping the commodity on the wholesale markets after purchasing pulses at an attractively lower rates, the prices remained stable,” market sources said.

The benefit of lower wholesale rates is not being passed on to the consumers as retailers are not lowering their selling prices in line with the wholesale market, they added.

The price tussle between the growers and the Sindh sugar mill owners continue, with the rates rising sharply higher owing to the pressure on the supplies, despite reports of a carryover stock of about 0.175m tons lying in the godowns of the Sindh crushers.

Another factor, which seems to have contributed to the price flare-up was said to be reports about the possible entry of the TCP into the sugar market. According to industry sources, the government has asked the TCP to purchase the surplus unsold stocks from the mills, and then export these.

The decline in some varieties of rice was, however, not understandable as steady exports could have checked the price decline in the backdrop of a short crop.

A rice loader is already in the port, and is loading the commodity under an export deal signed by the private sector party. The destination of the loader is said to be an African port.

Prices of sugar maintained their recovery trend from the recent lows to finish with a fresh gain of Rs60 to 80 because of the reported fall in the arrivals from the Punjab mills and pressure on ready supplies.

Wheat also remained in strong demand amid slow trading followed by reports of fresh export tenders for a substantial quantity and was quoted further higher by Rs15 per bag.

Pulses on other hand showed mixed trend on revival of demand from the Punjab dealers and pressure on ready supplies. Tuver, masoor whole and masoor dal were quoted higher by Rs65 to Rs100, the largest rise of Rs300 per bag being in masoor dal, gram whole, gram dal, beetle and peas were quoted lower by Rs25 to Rs100, while the heaviest decline of Rs237 was recorded in Urad.

Reports of fresh selling by importers were said to be the main reason behind fresh decline in prices followed by slow ready offtake, dealers said.

Guar on the other hand stayed firm at the previous levels followed by reports of fall in new crop arrivals, and was firmly held at the last levels amid slow trading because of higher prices.

The rice sector showed mixed trend amid conflicting reports about the supply position. While broken Irri and Irri-6 rose by Rs5 to Rs60, Sela basmati suffered a fall of Rs25 on renewed selling. Other fine varieties, including kernal type of basmati were traded at the previous levels on active selling.

Cereals, including jowar and bajra, showed mixed trend amid active bouts of buying and selling. Jowar came in for modest support and rose by Rs10, while bajra attracted selling and fell by Rs50. Maize was held unchanged at the previous level for want of fresh demand. Quietly steady trend was witnessed on the oilseed sector where prices of major seeds, including rapeseed and castorseed were again traded at the previous levels. Til was an exception, which came in for fresh active selling amid reports of fall in demand from the exporters. It suffered fall by Rs50 for the inferior type, but its fine variety rose by Rs100 per bag.

Castorseed also came in for active support, both from the local processors as well exporters, and finished with gains ranging from Rs15 to Rs50.

Oilcakes stayed firm followed by reports of slow arrivals. While rapeseed cakes were again held unchanged, cottonseed cakes posted fresh gains ranging from Rs8 to Rs9, despite slow ready mill offtake—M.A