FRESH sharp fall in prices of wheat featured last week’s trading on the Karachi wholesale markets as investors rolled positions from one essential counter to the other on reports of supply position in the ready section.

Meanwhile, sugar prices soared to new highs, rising by Rs300 to Rs350 per bag, while wheat suffered largest decline of Rs250 to Rs300 per bag, which is the highest so far in a week.

Dealers said that apart from larger release of imported wheat to flour mills ahead of the arrival of new crop in early April, the fall in ready demand also worked against the underlying sentiment.

They said prices could ease further as commercial dealers and brokerage houses holding large stocks of the commodity to sell at higher levels are expected to follow suit.

However, the persistent increase in prices of sugar for the third consecutive week, despite the fact the crushing season is still on, worried brokerage houses.

The increase in sugar prices was partly attributed to slow arrivals from mills and partly to higher price of sugarcane due to interruption in supplies as growers demanded higher prices above the officially agreed rate of Rs8 per maund, they said.

Incidentally, the current price flare-up on some of the essential counters did not spillover to other sections amid falling demand and retailers’ reluctance to buy at higher asking prices, some others said.

Meanwhile, there was a relative calm on the rice sector owing to some problems on the export front and a considerable decline in physical shipments against forward deals.

Barring IRRI-6, all other types were traded at previous levels in the absence of demand by private sector exporters. Market sources said although a rice loader was at the port after several weeks, prices remained stable around previous levels.

Among other essentials, masoor whole, imported type, was an exception, which rose from previous levels followed by reports of tight ready position, they said.

Cereal sector, on the other hand, remained under pressure followed by steady arrivals of new crop from Sindh market and fell in unison under the lead of maize, jowar and bajra.

Among other essentials, the market decline was led by wheat and all types of basmati and IRRI, which fell by Rs50 to Rs100. But pulses were held unchanged barring masoor and peas, which fell by Rs100 per bag.

On the sugar counter, both desi sugar and gur showed sympathetic increase in line with white sugar as both were marked up by Rs200 to Rs300 per maund.

Barring bajra, which showed a sharp increase of Rs175 to Rs375 per bag, the cereal sector remained under pressure as prices of both maize and jowar were quoted sharply lower.

The oilseed sector lacked normal support as supply position remained fairly comfortable barring cottonseed, which fell by Rs75 per 40 kg, while rapeseed, castor seed, til and some others were traded at previous levels amid slow ready off-take.

Meanwhile, cotton and cottonseed cakes came in for active support and were quoted higher by Rs100 and Rs25 respectively.