Chilli Plummets Sharply On Short Selling

0
268

Chilli futures ended the day down for third day on short selling triggered by good arrivals in the Guntur mandi. The NCDEX Chilli November contract ended the day at Rs 5822, down Rs 94 or 1.59% from last close.

The market data earlier projected that the chilli crop in Madhya Pradesh at 50-55 lakh bags against 40-45 lakh bags of the last year. The latest reports from Andhra Pradesh suggested that favorable rainfall in major chilli growing areas such as Guntur and Warangal will boost the strong chilli sowing in the current year. This will raise the productivity of the chilli crop in the current year. In the state of Andhra Pradesh, chilli sowing had completed in nearly 0.61 lakh hectare as on 25th September, sowing is just progressing only as compared to same in last year. Traders estimated the total stocks in of around 65-68 lakh bags in Andhra Pradesh mandies. This will easily meet the demand of chilli in the next 5-6 months.

Chilli futures pushed up above Rs 6,000 mark recent days on speculative activities on the reports of some delay expectation of crop from Madhya Pradesh. However, futures failed to extend the gains and plummeted to a week low of Rs 5808 level. The counter ended the day at Rs 5822, down Rs 94 or 1.59% and the open interest added 100 positions to 2,225 tonnes, indicating short selling.

Powered by Commodity Insights

LEAVE A REPLY

Please enter your comment!
Please enter your name here