Chilli February prices are projected to trade lower on poor demand from bulk buyers. Huge arrivals are reporting at spot market of Guntur which is likely to keep prices under pressure.
Falling exports from India are also expected to weigh on prices
Daily arrivals at spot market of Guntur have increased to 70,000 bags against 50,000 bags (1bag-40Kg.)
Andhra Rabi chilli area as on January 25th is reported 0.49 lakh ha as on 18th January v/s 0.44 lakh ha yr ago
Chilli production estimates for this season is estimated around 12.5-13 lakh tonnes
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
Chilli NCDEX Feb-12 support: 5982 6004 resistance: 6063 6094 Sell at 6045 TP 5960 SL 6110
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