THE Karachi wholesale commodity markets lacked normal trading interest last week as retailers were not inclined to make fresh buying at high rates.

Most of the essential items were stable but the physical business remained low as retailers and some wholesalers were not ready to buy at higher prices, dealers said.

Arrivals from the upcountry markets, notably gram whole and gram dal were fairly steady and did not allow any change despite reports of steady exports to India and Bangladesh, they said.

However, there was a relative quiet on the imported pulses’ counter where prices remained stable in the absence of a follow-up support from the retailers.

The market witnessed softening of prices of some items under the lead of wheat on reports that some private sector parties have made arrangements to import the commodity duty-free, market sources said.

Yet, any big fall in prices appears difficult as stockists were firmly holding the price line after controlling its release in the open market, they added.

Other essentials, notably sugar did not show an adverse impact despite the talk of fresh imports to ease the situation. Rather it is selling around Rs30 per kg.

Market sources said that the rice sector may undergo a major change after the new crop arrives by late September or early October, followed by reports that China has allowed imports under an agreement with the government.

Prices of both IRRI and fine varieties were stable despite higher exports of the old crop indicating that these may rise further once the Chinese outlets were opened.

According to them China was one of the largest rice importers as rice was a staple food there. Last year it had imported 73 million tons from various countries, notably South Korea and other Far Eastern countries.

In late week trading, prices of some pulses eased on reports that the Customs have cleared most of the consignments under the notification of reduced withholding tax from six to two per cent.

A good number of consignments were held up at the port as the relevant orders were still awaited, importers said.

The release of consignments and stocks by the importers pushed the prices of urad and masoor lower by Rs100 to 300 per 100kg bag. The rest stayed unchanged.

Among other items, wheat fell modestly by Rs5, while sugar was pegged at the last levels despite import talks. The mill demand remained fairly active.

The wholesale prices of sugar did not show any change owing to the regulated supplies. At the consumer end it was being quoted around Rs30 per kg — an all-time peak level.

There was a relative quiet on the rice sector where prices were firmly held at last levels barring IRRI-6 which suffered a modest fall of Rs25 followed by reports of steady arrivals from Sindh.

After a gap of two weeks, a ship was in the process of loading a rice consignment of 14,000 tons for a Gulf destination. Prices of fine types including sela and kernal were quoted unchanged at last levels amid reports of steady exports to the Gulf.

Cereals came in for strong support followed by reports of slow arrivals from the upcountry market and active demand from the end users. Prices of both bajra and maize were marked up by Rs100 to 250, while jowar was traded at last levels.

Oilseed sector, on the other hand, showed quietly steady trend as supplies matched the local demand. Prices of rapeseed and cottonseed were held unchanged amid slow trading.

Til suffered a fresh fall of Rs25 followed by reports of slow export demand and larger new crop arrivals from Sindh. Castorseed was firmly held at previous levels on active buying by the local crushers and exporters.

Oilcakes remained under pressure and fell by Rs3 to 5 for both rapeseed and cottonseed cakes owing to a weak oil market.—M.A.