MUMBAI (Commodity Online): Chilli futures went down further on Monday due to weak fundamentals such as lower demand and the higher supply in the domestic spot market.

NCDEX Chilli April contract slumped nearly Rs 100 or two percent to the session low of Rs 4720 per 100 kg. The counter now quotes at Rs 4740 and the open interest in the contract added 3.13 percent to 4,275 tonnes, indicating short selling.

As per expectations, Chilli futures traded on a negative note during Saturday’s trading session due to continued selling pressure on the exchange supported by the reports of gaining pace of fresh arrivals at Guntur market.

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Higher production expectations are also supportive for fall in prices. The active NCDEX April contract chilli futures opened lower at 4855 levels and traded to make an intraday high at 4880 levels, lower than the previous day’s high of 4931 levels. It made an intraday low at 4802 levels and settled the day at 4816 levels, with a negative change of 1.53%.

Chilli futures are expected to maintain its downward trend for the day because of continued higher arrivals. However, the downside might remain limited due to short covering.

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