Dull trading as buyers stay on the sidelines
The notable feature of the week’s trading was fresh sharp decline in prices of most varieties of rice, which fell in unison for the second week in a row under the lead of basmati and IRRI, types, which fell by Rs300 to Rs600 per bag of 100 kg.
Other prominent feature was that prices of essential items fell excluding guar seeds, which rose sharply on revival of mill demand.
Dealers said arrivals from upcountry markets were fairly steady as stockists released a good part of their stocks after having lost hopes of fresh increase in prices.
But they said that except rice varieties, which suffered fresh fall from the current all-time record high for the second week in a row, others were mostly held at previous levels amid a considerable decline in local demand.
Both IRRI and some basmati varieties remained under pressure as local commercial houses and some exporters sold in part their stocks at the still higher levels, they added.
They said although the new crop was still about a couple of months away including the early sown varieties of IRRI in lower Sindh rice belt, unsold stocks lying with stockists were also said to be on the lower side as bulk had already been exported.
Sowing of IRRI types on higher acreage in upper Sindh and Punjab belts are well under progress and indications are that if all goes well with weather conditions, there could be another bumper crop for the second consecutive year, they added.
But, some others said, pressure on irrigation water supplies to the rice belt, mainly in lower Sindh could have negative impact on overall production.
During the last season, a record crop of 5.5 million tones was harvested, bulk of which was exported. Shortage of the commodity and a good bit of holding back of stocks by commercial traders had caused an unprecedented price hike on this counter. Fixation of minimum export prices for both IRRI and basmati types, had in part stopped fresh increase in prices but they were still much higher than in normal years.
Among other essentials, sugar prices were again quoted lower as supplies from mills were on the higher side as some leading mills tried to sell their surplus stocks after official intake, which caused modest price fall.
The market fall was led again by the rice sector where prices fell in unison on active selling by stockists and exporters owing to fall in world demand after the fixation of minimum export rates.
While basmati types fell by Rs200 to Rs600 per bag, IRRI ones were quoted lower by Rs200 to Rs500 per bag on active selling amid falling demand. But fine varieties of basmati varieties were traded at the last levels in the absence of strong foreign demand. Among other essentials, sugar also came in for active selling after steady rise for the last couple of weeks and fell by Rs80 per 40 kg and so did desi sugar. However, gur remained in active demand and was held unchanged.
Pulses also lacked normal support at higher levels and prices were mostly held unchanged at previous levels under the lead of gram whole, gram dal and mosoor. Urad was an exception, which came in for modest selling and was marked down by Rs200 per bag. Peas followed them, off by Rs250.
Wheat, on the other hand, did not show any change and stood firmly at the peak level but ready business in it remained slow as consumers were not inclined to buy at higher rates.
Oilseed sector showed quietly steady trend as prices of major seeds including cottonseed, castor seed and some others were firmly held at the last week’s levels. Rapeseed, on the other hand, came in for modest selling followed by reports of weak oil and cake markets and steady arrivals from Sindh markets. The prices were marked down by Rs25 to Rs50.
Til followed them followed by reports of falling export demand and was quoted further low by Rs300 per 40 kg.
Oilcakes ruled unchanged for cottonseed cakes on stray mill buying, while rapeseed cakes fell by Rs20 per bag in sympathy with fall in rapeseed prices.—M.A.