Chilli futures prices are projected to trade lower on poor demand along with rising arrivals. However, a small recovery can be seen on short covering during the day. Nonetheless, over bearish trend might pull down the prices again on fresh selling in far month contracts.
Domestic bulk buyers are also staying away from market in anticipation of further fall in prices Daily arrivals at spot market of Guntur declined to 40,000-50,000 bags on Thursday (1bag-40Kg.)
Export inquires from Bangladesh and Pakistan are remaining poor
Andhra Rabi chilli area as on February 8th is reported 0.50 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 have declined while volumes and open interest have increased. It indicates that bearish trend is likely to continue on fresh selling
Chilli NCDEX Feb-12 support: 5082 5161 resistance: 5362 5463 Sell at 5220 TP 5080 SL 5330
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