Chilli February prices are projected to continue the down trend on subdued demand from bulk buyers. Fresh arrivals are increasing at spot market of Guntur Huge arrivals are reporting at spot market of Guntur which is likely to keep prices under pressure.
Poor export inquires from Pakistan, Sri Lanka might also weigh on prices
Daily arrivals at spot market of Guntur declined to 40,000 bags against 70,000 bags (1bag-40Kg.), while prices remained down amid poor demand
Andhra Rabi chilli area as on January 25th is reported 0.49 lakh ha v/s 0.44 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
According to derivative analysis, prices, open interest and volumes have declined. It indicates that the price decline is being caused by liquidations of positions. Due to prevailing volatility small traders are exiting their positions which might result in prices trading lower
Chilli NCDEX Feb-12 support: 5941 5958 resistance: 6010 6039 Sell at 6000 TP 5910 SL 6075
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