TRADING on the Karachi wholesale commodity markets remained relatively slow during the last week as commercial dealers and brokerage houses did not make fresh commitments owing to delivery problems.

Market sources said arrivals from upcountry markets were falling each day as cargo haulers had raised fare owing to pre-Eid holiday rush of booking by exporters to meet their physical shipment deadlines of various consignments for foreign destinations.

They said the next week after the Eid holidays would pass through dull trading as both sellers and buyers would not make fresh commitments owing to financial risks involved in the long post-Eid holiday weekend ahead.

But despite steady decline in arrivals of essential commodities from upcountry trading centres, prices, barring a few changes here and there, remained stable around previous levels.

As a result, prices of most essential items were firmly held at previous levels.

Dealers said prices of most of them had shown sharp decline last week but stockists held on to their positions and did not try to create artificial shortage of any essential commodity.

Pulses sector lacked normal trading interest as major sought after item, gram whole was firmly held after Ramazan entering in its last week and with that easing a strong demand for it, dealers said.

Wheat, which had risen to an all-time high level of Rs2,500 per bag together with problems on the flour front, remained stable around higher level despite reports of arrival of two ships loaded with about 75,000 tons of the stuff, they said.

Sugar was, however, an exception, which maintained its upward drive for the fourth week in a row apparently owing to higher consumption during the holy month and pressure on ready supplies because of higher exports.

Some others said the higher fixation of sugarcane price at Rs81 per maund for the new crushing season was one of the reasons behind the persistent increase in its price.

Barring a fresh sharp fall of Rs500-700 per maund in coarse basmati, the rice sector stayed dormant followed by reports of steady export enquiries both from new and traditional importers.

The future price trend would depend on arrival of new IRRI crop from Sindh.

And how the local markets would react to the reports of a bumper crop would be known in weeks to come, dealers said.

Wheat prices did not show any change throughout the week, as supplies to flour mills were maintained on higher side in an effort to avert any flour shortfall and check speculative rise in its price. The strategy worked well.

Sugar, on the other hand, remained in active demand for Eid and its prices were quoted higher by Rs50 per bag.

Desi sugar, on the other hand, rose by Rs200 per bag on active broker demand.

Barring urad, which was quoted higher by Rs375 per bag of 100 kg followed by reports of lesser imports during the last couple of weeks, other pulses were mostly traded at last levels under the lead of gram whole and gram dal, being one of the major items on the consumer weekly demand list.

Among coarse rice varieties, IRRI-6 came in for active support followed by reports that a rice loader had arrived to load about 13,000 tons of the commodity during the next week.

It was quoted higher by Rs22-40 per bag. Kernal and Sela types were traded at last levels.

Cereal sector lacked fresh support from any quarter and as a result, prices of maize, jowar, bajra and barley were firmly held at last levels.

Major oilseeds did not show much price changes and were held unchanged under the lead of rape seed, but cottonseed rose by Rs20 and so did til, which spurted by Rs400 on revival of export demand.

But castor seed, on the other hand, remained under pressure after steady arrivals from Balochistan and marked down by Rs50 per 40 kg.

Oilcakes showed divergent trends. While rapeseed cakes were again held unchanged, cottonseed cakes fell by Rs20 on selling followed by steady new crop arrivals.—M.A