Chilli futures prices resumed down trend on profit booking on previous gains on Tuesday.
As expected arrivals at spot market increased in lieu higher prices but huge arrivals pulled down the prices to previous levels. Therefore on cues from spot market futures ended the day on negative note.
Outlook
Chilli February futures prices are projected to trade slightly positive on follow through buying during early trade of the day. According to trade sources, today arrivals might increase due to sudden rise in prices which might shade yesterday’s gains during later hours.
Daily arrivals at spot market of Guntur declined to 40,000-50,000 bags on Tuesday against 30,000 bags (1bag 40Kg.)
Export inquires from Bangladesh and Pakistan are remaining poor
Therefore, fresh arrivals season along with subdued exports are likely to have negative impact in coming days
Andhra Rabi chilli area as on February 01th is reported 0.50 lakh ha v/s 0.46 lakh ha yr ago
Chilli production estimates for this season is estimated around 12.5-13 lakh tonnes v/s 10.5- 11 lakh tones last year
Courtesy: Karvy Commtrade Ltd.
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