PHYSICAL activity on the Karachi wholesale commodity markets failed to pick up during the previous week as both brokerage houses and commercial traders most of the time stayed out owing to city violence followed by strike on Monday.

Arrivals from the upcountry markets, notably from Sindh almost dried up as echoes of city killings triggered reaction from the locals in the interior, sources said.

Floor brokers said most of the leading commodity traders did not opt for fresh buying even in some essential items amid fears of law and order situation.

Ready offtake by both wholesalers and retailers was on the lower side as everyone awaited return of normalcy to the city. Most of the buyers preferred to indulge in fresh trading by next week as by that time trading conditions are expected to improve, they said.

At the fag-end of the trading week, some of the essential items came in for modest support but mostly at previous levels despite the fact that there was pressure on supplies.

Barring wheat, which showed a fresh modest rise partly on active covering purchases being made by mills and the private sector exporters, prices of others remained stable around previous levels.

There was relative quiet on the rice sector despite pressure on ready supplies and sustained physical shipments against forward deals, prices did not show much change, market sources said.

They said unsold stocks of commodities with the general stockists are drying up but their bigger partners hold enough stocks and intend to sell them at higher levels before the arrival of new crop.

Pulses, notably imported ones, followed them but reports reaching here said prices on the retail levels has risen sharply owing to pressure on ready supplies as some of the importers did not release fresh stock of imported stuff, they added.

Wheat was among the leading gainers in a dull broader market as local mills and private sector exporters remained active buyers and covered their forward positions against foreign sales.

Prices were quoted higher by Rs25 to Rs45 per bag of 100kg, largest fall after several months and despite a bumper crop for the second season in a row.

The market sources said wheat prices may remain under pressure as export allocations of half a million tones is a big quantity and could lead to speculative rise.

Rice sector followed them under the lead of IRRI types as exporters covered their positions against forward sales and pressure on ready supplies followed by reports that bulk of the unsold stock with commercial houses is falling each week owing to larger shipments.

IRRI-6 and IRRI broken were quoted higher by Rs20 to R70 per bag but on the other hand fine varieties including sela and kernel were firmly traded around the previous levels.

Barring a decline of Rs100 in imported type of beetle, prices of other varieties of pulses including local and imported were steadily held at previous levels amid falling demand.

Cereal sector showed quietly steady trend as prices of maize, bajra and barley were held unchanged, while jowar fell by Rs10.

Major oilseeds lacked normal buying interest and were quoted at previous levels under the lead of cottonseed, rapeseed, castorseed and til.

Oilcakes followed them as both rapeseed and cottonseed cakes were traded at the last weekend levels amid light trading.—M.A.