TRADING on the Karachi wholesale commodity markets last week remained fairly active as both brokerage and commercial houses indulged in hasty selling fearing official raids and sold their long positions in most of the essential commodities including rice and pulses.

Prices of rice varieties, mainly fine types including kernel and sela; most of pulses as well as some raw materials remained under pressure and fell sharply lower.

But wheat and sugar prices maintained upward drive and both were quoted higher for unknown reasons though there was no pressure on ready supplies, dealers said.

The wholesale market remained under pressure as prices of most of the essential items were quoted lower from the previous higher levels amid stray ready off-take by retailers. But at the retailer’s end there were reports of uneven prices mostly on the higher side.

Whether or not official price-checking machinery has any role in a stable price sans speculative rise, dealers hold different views but said the demand remained on the lower side throughout the week.

Arrivals from upcountry as well as release of some imported stuff by leading importers was normal, which, in a way, did not allow the ready position to get dry and liquid. And in return it kept a check on speculative rise.

The rice sector, which has been under pressure for the last couple of weeks partly on reports of another bumper crop of around six million tones, did not show much change as prices of both IRRI and basmati types were marked sharply lower on strong weekend selling.

Dealers said pre-Ramazan buying spree was nowhere in sight, which in turn kept prices stable around previous levels amid modest ready buying and selling.

However, new records are expected to be set up on the export front during the current year after the lifting of import ban on rice from the current season.

Private sector exporters said Russia is a big export market for the local stuff with good price tag and hoped new records would be set up during the current season followed by reports of a record crop and large exportable surplus after meeting home demand of about 3.5m tones.

Wheat prices stayed on the higher side despite arrivals of two bulk wheat carriers with about 73,000 tons of load during the current week. As a result, there was a change on the higher side in the wholesale price of wheat, but flour prices are said to be not stable and fluctuating from area to area despite a number of official outlets providing the commodity at subsidised rates.

Sugar, however, was an exception which remained in strong demand during the holy month and was quoted modestly higher amid active trading on the wholesale market.

After mid-week, prices of rice started to fall from the current higher levels. Prices of IRRI types fell by Rs88-100 per bag, while fine types including sela and Kernal were quoted sharply lower by Rs300-700 per bag on active selling.

Dealers said arrivals of new crop and a considerable fall in local demand were the reasons behind the steep fall.

Pulses followed them and fell in unison under the lead of gram powder, gram pulse, peas, beetle, falling by Rs100-300 per bag. The largest decline of Rs375 was noted in urad imported type. Masoor pulse was an exception, which rose by Rs485 per bag on reports of short supply.

Among essential items, which maintained their upward drive were wheat and sugar. Wheat was quoted higher by Rs50 per bag while sugar was up by Rs100-200 per bag.

Oilseed sector also fell from the recent highs as supply position improved under the lead of rapeseed, which fell by Rs50-225 per 40 kg bag on active selling. On the other hand, cottonseed did not show any change despite weak oil and cake markets. Cotton also fell by Rs50 per maund.

Among other oilseeds, til came in for active selling and was sharply lower by Rs200-900 on active selling followed by slack export demand. Castor seed, however, was held unchanged at the previous level.

Cereals, which had been ruling firm for the last couple of weeks, also followed the lead of the general market trend and fell by Rs100-400 per 100 kg for bajra, jowar and maize.

Guar seeds showed firm trend on reports of short supply and were quoted higher by Rs400 per bag amid active trading.

Oilcakes rose by Rs5-20 for rapeseed cakes, while cottonseed cakes fell by Rs100 per 40 kg.

—MA