The post-budget week on Karachi wholesale commodity markets remained insipid as both brokerage and commercial houses remained busy in analysing the impact of fiscal measures on the trade.

However, new fiscal steps are silent over it. Yet, incentives given to the farm sector may pull down the prices of some essential items once these are adjusted.

Trading in local markets is expected to get normal possibly by next week though there is no chance of a price flare-up on any counter, even on essentials as all items are tax-free - sympathetic negative impact from other sectors notwithstanding.

Some leading stockists are worried as the new budget has not touched the commodity trade rather doled out incentives to the farm sector, including the sales tax waiver”, said a broker.

Physical business stayed light despite reports of normal arrivals from the Sindh markets bulk of which found its way into the godowns rather than being traded in the ready section, brokers said.

Commercial houses and stockists, the active buyers in pre-budget sessions, held on to their stocks instead of selling in open markets, they added.

Barring a few changes here and there, wheat remained stable around previous levels. Changes in rice and pulses were fractional and did not reflect pressure on the supplies.

Commercial holdings indicated the weakness of the stockists to hold the price line for long. The signals called for operations within the spectrum of supply and demand, market sources said.

Meanwhile, rice exports resumed last week as a big consignment was being loaded at the Karachi port under a previously signed deal.

According to sources the destination of the consignment appeared Gulf as a good part is of fine types of basmati, both sela and kernel.

With the exception of wheat which showed a modest increase amid conflicting reports of arrivals from the upcountry markets, other essential items generally held unchanged.

Leading brokers and commercial houses are still in the process of evolving post-budget buying strategy and most of the time kept to the sidelines and their absence failed to cause major price changes, dealers said.

Rice, pulses and sugar stayed unchanged though some dealers reported stray business, notably in rice and pulses.

Shipment of old rice crop was judiciously made as exporters had covered their forward sales, late last year. Barring IRRI-6 broken which fell by Rs10 on the slackened export demand, all other types remained held to last levels.

Sowing of the new crop in some areas is in progress while at others it has been completed with the new crop expected to arrive by early September. But it may reach here a bit earlier.

Physical activity in sugar stayed light as the utility Stores met most of the demand at a bit cheaper rates, they added.

Arrival of sugar from the mills was down as a producers’ cartel held back the stocks to keep the prices at the current Rs2,400 to Rs2,480 per 100kg bag.

According to the latest official figures, the Pakistan Sugar Mills Association still holds back an unsold stock of about 1.6 million tons in godowns.

Among the cereals, bajra came in for strong support followed by reports of a short supply and rose by Rs175 per maund, the highest-ever level so far, while maize was marked down by Rs25 on selling followed by new crop arrivals from Punjab.

Guar came in for modest selling followed by the reports of rain in major growing areas of the Sindh and fell by Rs25 to 35 per bag but the processors stayed on the sidelines.

Oilseed sector showed mixed trend amid slow trading. Rapeseed fell by Rs5 to 50 on the selling prompted by new crop arrivals and weak oil cake market. Castorseed, til and cottonseed were traded at previous levels.

Oilcakes ruled divergent while rapeseed fell further by Rs5 in sympathy to a weak seed market, while the cottonseed cakes rose further by Rs10 amid reports of pressure on ready supplies.

—M.A.