A FRESH price flare-up on some of the essential counters highlighted the previous week's trading on the Karachi wholesale market on active buying made by upcountry dealers.
Pulses and rice sectors led the market advance followed by reports of pressure on ready stocks and holding back of stocks by leading commercial houses after mid-week.
Earlier, a relative calm was witnessed as commercial houses took stocks of their inventories before making fresh buying.
Price changes were mainly confined to some of the essential counters but most of them were fractional and reflected that supply position has considerably improved during the week partly owing to steady arrivals from upcountry markets and partly to selling by local stockists, dealers said.
But what was more important, which partially checked price flare-up at some of the essential counters, was reports of steady new crop arrivals from Sindh markets followed by selling by some of the leading importers of commodities, they added.
Harvesting of wheat in major growing areas is well in progress but new crop arrivals are modest, which in turn did not influence prices on the lower side.
Moreover, reports reaching here indicate that brokers and some flour millers are purchasing the commodity from growers at farm level for speculative trading, that is to sell the stock after holding it for a certain period, market sources said.
During last couple of years a section of investors had literally monopolised the commodity trade after obtaining liberal loans from various banks and selling them at higher rates after holding them in city godowns for some months, they added.
Some pulses, notably gram and masoor, which are harvested with wheat, did not show much change as new crops arrival were on the lower side amid reports of holding back of bulk of the crops by leading local and interior stockists.
On the export front, physical shipments of rice against forward deals, and cement were maintained and some loaders remained busy on the port loading the commodities.
Sugar prices did not show any change and remained stable depending on demand and supply position. However, unlike previous weeks there were no reports of pressure on supplies. Some of the mills are also said to be steadily selling their stocks on the open markets, which did not allow fresh rise in prices.
Activity on industrial raw materials was a bit slow as prices of some of them were quoted higher followed by reports of a short crop, notably of some major oilseeds.
Masoor, masoor dal, peas and urad were leading among pulses, which rose by Rs25 to Rs150 per bag, while the rest others were mostly traded at previous levels amid modest ready offtake.
Rice sector followed them on active fresh support extended by private sector exporters. IRRI6, IRRI broken and basmati posted fresh increase ranging from Rs10 to Rs100 but others, including kernel and sela basmati, were remained unchanged.
Wheat prices, though rose modestly followed by reports of fall in new crop arrivals, are expected to fall during the next couple of weeks after fresh arrivals gather momentum.
Sugar prices ruled around previous levels ranging from Rs28 to Rs30 per kilo from area to area but steady arrivals from mills checked further rise in prices.
Bajra among the cereals showed sharp increase followed by reports of fall in arrivals from the upcountry markets and was quoted higher by Rs150 per bag on active local demand.
Other cereals including maize, jowar and barley were traded at the last levels followed by reports of steady arrivals from upcountry markets and fall in demand.
Oilseed sector did not show much price changes as til, castorseed, remained unchanged at the last levels followed by reports of slack demand from the exporters.
Major seeds, barring rapeseed which rose by Rs10 to Rs20, were traded around the previous levels under the lead of cottonseed as crushers kept to the sidelines.
Oilcakes ruled unchanged for rapeseed cakes, while cottonseed cakes were marked up by Rs5 for inferior type but fine variety was marked down by the same amount.—M.A.
A FRESH price flare-up on some of the essential counters highlighted the previous week's trading on the Karachi wholesale market on active buying made by upcountry dealers.
