Chilli Tumbles To One Week Low On Strong Arrivals

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Chilli futures ended down for the third day due to restricted buying by exporters along with fresh supplies from Madhya Pradesh. The NCDEX futures for the November contract ended the day at Rs 6400, down Rs 50 or 0.58% from last day close. Chilli 334 quoted at Rs 5000-6300 per quintal in the Guntur spot market with the total arrivals stood steady at 50,000 bags (3,000 bags of Khammam teja).

The spot and futures prices of chilli have reported steady trend from the few days with the speculation that heavy rainfall in the major producing areas of Madhya Pradesh will reduce the overall chilli production in the current year. This has provided the opportunity to major stockiest to liquidate their stocks at elevated levels. The spot market prices were also dampened by mounting supplies from Madhya Pradesh. Traders are expecting that new supplies will gain momentum from other mandies like Indore and Ujjain from the next week.

Chilli futures dipped Rs 308 per quintal in the last three days to near a week low level. The counter ended the day at Rs 6400, down Rs 50 or 0.58% from last day close and the open interest added 70 positions to 2,840 tonnes, indicating short selling.

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