Chilli futures plummeted sharply on Saturday on profit sales, despite weak arrivals. The NCDEX Chilli December delivery ended the day at Rs 6790, down Rs 66 or 0.96% from last close. Chilli 334 Cold storage varieties quoted at Rs 5000-7000 per quintal on Friday and the arrivals fell to 30,000 bags from 40,000 bags previous day.
Weak supplies against the strong demand pushed the chilli futures higher side recently. Traders estimated that the total production of chilli in the state of Madhya Pradesh is likely to be around 38-40 lakh bags against the previous estimate of 45-50 lakh bags for the current year. Tamil Nadu Agricultural University latest study projected that expected normal production in the current season, good domestic and export demand will keep the price to rule firm.
Chilli futures failed to continue the recovery as profit selling emerged in the counter at surge. The NCDEX Chilli December delivery ended the day at Rs 6790, down Rs 66 or 0.96% from last close. The open interest pared 235 positions to 2,705 tonnes, indicating profit taking.
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