COMMODITIES: Wheat prices go up, sugar declines

TRADING on the Karachi wholesale commodity markets last week remained active, but consumers were not inclined to make bigger commitments at higher prices waiting for an easing after reports of steady arrivals from upcountry trading centres.

The mid-week activities witnessed alternate bouts of buying and selling, which pushed prices of some essential items down under the lead of sugar, while others rose under the lead of wheat owing to pressure on supplies.

But late in the week, fresh increase in wheat prices had a sympathetic impact on other essential items, although mid-week improvement in supplies had cut down a good part of the initial increase.

Dealers said a considerable decline in supplies from official sources to millers was the reason behind the increase in wheat and flour prices at the retailers end.

Although a good part of general consumers’ demand remained confined to official retail outlets of the utility stores, some wholesalers opted for commodity markets, they said.

On other counters of essentials, sugar prices did not show much change and remained static after reports that most sugar mills in Sindh had resumed crushing operations, they said.

Sugar of the new crop had not yet arrived, and it was hoped that it will start coming by the next couple of weeks, which would stabilise the local prices.

Moreover, selling by local stockists of the old crop kept prices stable around previous levels.

On the export front, prices of all exportable commodities maintained the previous higher levels having a negative impact on exports by private sector, they said.

As a result, no ship called at the Karachi port to load commodities during the last week as private sector exporters are finding it difficult to cover their forward sales owing to higher local prices, they added.

The arrival of new crop, mainly Irri types from Sindh trading centres, was said to be on the lower side as stockists there were holding on to their unsold positions to dispose them of at higher rates.

Prices of major industrial raw materials remained stable around previous level, but fell where arrival position showed further improvement, barley being one of the major gainers after early weakness.

Wheat led the advance on essentials’ counters rising by Rs85 per bag to a new record level, but on the other hand some other items tended lower on selling after reports of steady arrivals from upcountry markets.

Sugar, on the other hand, came in for active selling from local stockists ahead of arrival of the new product and was quoted lower by Rs100 per bag and so did gur and desi sugar, which showed fall of Rs200.

Prices of rice varieties were firmly held at the last levels barring Irri-6, which was marked up by Rs20, while fine types were traded at the last levels and so did Irri-9.

Sindh basmati type was quoted higher by Rs100 per bag of 100kg.

Pulses showed mixed trend. While moong rose by Rs25, gram and beetle suffered fall ranging from Rs50 to Rs150 on selling.

Among major industrial raw materials, guar seeds were quoted sharply higher on reports of tight ready position closing with gains ranging from Rs100 to Rs200 per bag of 100 kg.

Among oilseeds, Till rose by Rs250 per 40 kg on strong demand from exporters. The yield of the crop is also reported short. Cottonseed followed it, up by Rs30.

Cereals also remained in short supply and as a result, prices of jowar and barley were quoted higher by Rs50 each, while maize fell by Rs40 to Rs50 on selling prompted by steady new crop arrivals.

Rapeseed, on the other hand, came in for active selling at higher levels followed by reports of new crop from Sindh and was marked down by Rs75 to Rs150 per 40 kg.

Oilcakes ruled easy by Rs20 for cottonseed cakes owing to steady new crop arrivals, while rapeseed cakes were traded around the previous levels.—M.A

The following are last week’s Karachi wholesale commodity market rates in rupees with comparative figures for the same period a year ago.

As on A week Corresponding

Nov 30, 2007 ago last year

CEREALS (Per 100 kg gross)

Bajra 1450/1650 1450/1650 1075/1300

Makai (Maize) — 1525/- 1075/1100

Wheat 1525/1530 1565/1580 1220/1235

Jowar 1300/1350 1300/- —

Barley 1350/1450 1300/1400 1150/-

PULSES

Moong (Sindh) 2875/3000 2850/3000 3250/-