Chilli February futures prices are projected to trade range bound on subdued demand from bulk buyers. Fresh arrivals are increasing at spot market of Guntur which is likely to keep prices under pressure.
Poor export inquires from Pakistan, Sri Lanka might weigh on prices
Daily arrivals at spot market of Guntur declined to 50,000 bags on Friday against 40,000 bags (1bag-40Kg.)
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 have increased while 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: 5968 5978 resistance: 5997 6005 Trading Range: 5944-6040
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