TRADING activity on the Karachi wholesale commodity markets last week was fairly active as both leading brokerage and commercial houses remained active buyers mostly at a decline on the essential counters.

Unlike previous weeks, when prices maintained their upward drive, there was a relative quiet on the wheat front, although prices were held at the all-time peak level around Rs2,800 per 100 kg bag.

Larger imports of wheat during the last two months seemed to had stabilised its prices but the impact of fixation of higher support price at Rs950 per 40 kg remained a bullish factor and kept its prices on the higher side, dealers said,

According to official sources well over two million tones of wheat had been imported including a ship unloading about 42,000 tones of the commodity at the port.

However, reports about supply of wheat flour at retailers’ outlets are said to be on the higher side from area to area despite official outlets at which the commodity is being supplied at a subsidised rate, dealers said.

After about a gap of two months owing to short local supplies, export of rice was resumed during the week as a rice loader was at the port loading the commodity, they said.

The prices of basmati, which had been stable around the previous levels, showed sharp increase over the week after the resumption of exports and were quoted higher by Rs1,000-1,200 per bag followed by reports of pressure on local supplies, they added.

However, new crop of IRRI and other types of basmati are said to be in the harvesting stage and are expected to reach the market by early month amid reports of another bumper crop of over six million tones.

How would the new crop prices move was not clear but larger exports could push them higher again around the previous season’s peak level of well over Rs70 per kg for IRRI and over Rs100 for fine type basmati, market sources said.

Among other essentials, prices of sugar maintained upward drive on reports of short supply, while pulses eased under the lead of masoor followed by reports of larger imports.

After the mid-week, activity picked up significantly as dealers played on both side of the fence indulging in alternate bouts of buying followed by reports of the size of the arrivals from upcountry markets.

The market decline was led by wheat, which came in for active selling late in the week followed by reports of steady arrival of the imported stuff in the flour mills followed by a considerable fall in their ready demand from the open market. It showed a modest fall of Rs25 per bag and stood at a higher level of Rs2,800 per 100 kg bag.

Other essential items in general showed increase after the mid-week trading and the largest rise of Rs500-700 per bag was noted in the price of basmati, while both IRRI and fine types of basmati were quoted unchanged at the previous levels.

Sugar came in for renewed support and was marked higher by Rs50, but major increase was noted in gur, which rose by Rs200, while desi sugar was firmly held at the previous level.

Among pulses, masoor whole and masoor dal came in for strong support amid reports of short supply and were quoted higher by Rs600-800 per bag.

On the other hand gram whole and gram dal and urad were firmly held at the last levels as ready supply position was fairly comfortable but imported beetle types suffered fall of Rs200.

Cereals also came in for modest selling under the lead of bajra, which fell by Rs90 per bag on selling triggered by reports of larger new crop arrivals, while maize, jowar and barley were traded at the last levels.

Guar seed followed them on selling by the local dealers and were quoted higher by Rs175 per bag amid active trading.

Oilseed sector showed easy trend as prices of cottonseed, rapeseed, and castor seed were marked down by Rs25-50 per 40 kg bag amid active selling prompted by steady arrivals.

Cotton followed them as its prices were quoted lower by Rs175 per maund on selling by ginners and dumping of phutti by the growers at the lower levels.

Oilcakes, both of cottonseed and rapeseed, lacked normal trading interest and were held unchanged at the previous levels amid slow ready off take.

—M.A.