The Karachi wholesale commodity markets turned mixed last week as the brokerage houses took profits at the inflated levels on some of the essential counters under the lead of some varieties of pulses.

But the larger fall was averted on any of the counters as only those items came in for selling, which had risen sharply during the last couple of weeks, followed by the reports of short supply.

Guar prices, which had soared to five-year peak level maintained their stride and rose to Rs1,825 per bag from the previous Rs1,775, and were on the higher side viewed in the backdrop of export prices of its by-products, brokers said.

The early selling was caused by the mid-week rain, which has brightened the prospects of the new crop in Sindh and Balochistan, the two deficient areas behind the previous week’s price flare-up, they added.

Imported types of pulses led the market advance which caused sympathetic price flare-up on some other essential counters also, but the ready business remained slow as the buyers did not make fresh purchases at the rising rates, dealers said.

Wheat was, however, an exception which remained in active mill demand followed by the reports of steady export at the higher rates as compared to the international ruling prices, they added.

Reports that the Trading Corporation of Pakistan (TCP) has sold 30,500 tons of the commodity at $114 per ton, which lured the mills for fears of further increase in prices.

The TCP has been entrusted with the job of marketing an exportable surplus of a million tons, and according to market sources a high-powered delegation led by its chief is shortly leaving to a number of countries to sign fresh export deals, brokers said.

Wheat prices rose further in response to steady export sales by both the private sector commercial exporters and the official agency during the next couple of months, they added.

After remaining static for last couple of weeks, sugar prices rose by Rs25 per 40kg on reports that the unsold stocks lying with the mill owners had declined below a million-ton-mark.

According to the latest official figures an unsold stock of 0.990m tons is lying in the gowndowns of the millers, which is said to be barely sufficient for local consumption before the arrival of the new crop sometimes in early November.

According to mill sources, the local monthly consumption of the commodity is about 0.250 million tons but the outflow of the commodity through informal channels to Afghanistan could cause some imbalances in supply and demand positions.

Other allied items, notably the industrial raw materials also showed sympathetic increase and so did some of the essential items, notably the pulses.

Among other raw materials, rapeseed also attracted active buying followed by the reports of strong oil and cakes market and were firmly held at the previous week’s higher levels.

Rice sector maintained a firm posture followed by the reports of active local demand and a reported slight pressure on ready supplies. Prices of all types, including Irri and basmati were held unchanged. Irri broken was an exception, which rose by Rs10 to 20 per bag.

Barring urad, beetle and masoor dal imported, which fell by Rs37.50 to 200 per bag, masoor, moong, gram dal came in for active support and finished higher by Rs62 to 125, largest rise of Rs150 per bag being in masoor imported type.

Cereals also followed the general market trend as the prices of Jowar and maize rose by Rs10 to 30, while bajra was traded lower by Rs50 as compared to previous levels on the renewed selling.

Oilseed sector depicted firm trend on the reports of shortage of the commodity and as a result, the prices of rapeseed were quoted further higher by Rs25 to 50. Firm oil and cakes markets also contributed to the upturn.

Castorseed and till also followed the major seed and rose by Rs10 to 25 amid reports of the revival of foreign demand. Ready business was active.

Oilcakes also showed firm trend in sympathy with the rapeseed as prices rose further by Rs20 to 35 for both rapeseed and cottonseed cakes respectively. — M.A