Wheat price eases

PHYSICAL activity on the Karachi wholesale markets last week remained modestly active as brokerage and commercial houses covered their short positions on some essential counters under the lead of wheat. On the other hand, sugar remained under speculative squeeze as a section of commercial dealers continued to build up long positions at the prevailing rates. It was quoted higher by Rs90-110 per 40kg and dealers predicted further rise. However, wheat, among other essentials, remained under pressure owing to arrivals of new crop and was marked lower by Rs10. Sela basmati was quoted higher by Rs50, while moong rose by Rs100. All others were traded around previous levels. Arrivals from upcountry were normal with the bulk comprising industrial raw materials and some type of cereals. However, prices remained steady, dealers said. Arrivals of wheat crop from Sindh markets had started but they did not have any negative impact on the ruling prices. Market sources said some easing in prices was on the card in the backdrop of reports of another bumper crop. Both wheat and sugar remained under a speculative squeeze, the former on steady exports as another ship was in the port loading 25,000 tons of it, while sugar prices were also on the rise despite reports of extended crushing season as cane growers expected further increase in prices at the fag end of the season. Meanwhile, harvesting of wheat was well in progress in Sindh and the government intended to procure 1.3m tons of it at the previous rate of Rs950 per 40 kg. The Sindh government has set up a number of procurement centres in all the districts to buy the commodity from growers and in most cases bags were being supplied to them. The arrival of essential commodities from upcountry remained erratic, causing supply gaps here and there followed by increase in prices but later it showed improvement and in turn brought stability in ruling prices on some counters. Market sources said although price increases on the wholesale markets during the week were orderly, retailers were not inclined to abide by rules and sold some essential items at their owned fixed prices. They said, for instance, wheat prices fell modestly during the week from the previous levels amid slight either-way changes here and there but at the retailers' end sharp increase was reported in sugar prices. Unlike previous week, the activity on the industrial sector was on the higher side as millers and brokerage houses covered positions followed by market talk of fall in arrivals from interior markets, they added. On the export front, the activity was maintained on the higher side to meet the physical shipment deadlines as two ships were on the port loading wheat and rice. Activity on the rice front was also maintained at a steady pace as exporters remained active in their covering operations even at higher prices to meet their shipment deadlines, they said. Prices of coarse type rice remained on higher side owing to pressure on ready supplies but there were no reports of shipment delays by any exporter. On the counters of other essentials, prices of pulses remained steady and did not show much change despite reports of fresh arrivals of imported stuff. News from cotton market worried ginners as prices further rose, heading toward their peak levels and were last quoted around Rs12,500 per maund. Major oilseeds including til, rapeseed and castor seed were traded around previous levels followed by fall in both local and foreign demand. Oilcakes followed the lead of oilseed and were again held unchanged for rapeseed but cottonseed fell amid slow demand from the crushers. —M.A.