However, overall fundamentals are still weak due to poor domestic and export demand along with rising arrivals, which might weigh on prices during the day.
According to trade sources, export demand from neighboring countries is also remaining poor which might have negative impact on prices
As per data released by Spices board, during Apr-Dec, 2011 export of chilli was around 1,53,500 tones down by 19 % Y/Y
Domestic bulk buyers are also staying away from market in anticipation of further fall in prices
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, open interest has declined while volumes and prices have increased. It indicates that Market has a lot of traders initiating from both sides but larger traders may be liquidating into the higher prices.
The market may be vulnerable to large price swings as shorter time frame traders attempt to trade from both sides of the market but liquidating before end of day
Chilli NCDEX Feb-12 support: 5113 5167 resistance: 5284 5337 Trading Range 5160 – 5330