| Date: |
27-07-2010 |
| Subject: |
India Red Chilli Futures Touch Two Percent Lower Circuit |
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India Red Chilli futures pared the prior gains on weak domestic demand and higher stocks. Some buying helped chilli futures to close higher in the Saturday's session. Benchmark August 2010 contract on NCDEX ended the Saturday's session higher by 0.76 percent at Rs 4624 after moving in the range of Rs 4640-Rs 4609 per 100 kg.
In today's early moves, Benchmark August 2010 contract moved lower by two percent to the session low of Rs 4532 and the counter is now trading at Rs 4549 per 100 kg. The open interest added 0.37 percent to 6,750 tonnes, indicating short selling.
Cold store Chilli arrivals in the Guntur mandi surged to 30,000 bags from 15,000 bags. NCDEX quality 334 traded steady at Rs 4600-4700 and Teza chilli quoted steady at Rs 6200-6300 per 100 kg respectively.
Cold store Chilli arrivals in the Guntur mandi slipped to 20,000 bags from 30,000 bags on Monday. NCDEX quality 334 traded at Rs 4200-4300 against Rs 4500-4600 and Teza chilli quoted steady at Rs 6200-6300 per 100 kg respectively.
Fundamentals of Chilli are weak on higher stocks and weak buying in the spot market. As per market sources, the total carryover stocks of chilli were at 95 lakh bags (one bag = 50 kgs) against 70 lakh bags reported last year in the same period. The total stocks of around 55 lakh bags were reported at Guntur mandi (Andhra Pradesh), while Maharashtra and Karnataka reported 20 and 18 lakh bags respectively. Prices were also daunted by steady sowing progress of chilli crop at Andhra Pradesh. The total sowing of chilli crop as on 14th July 2010 was at 3000 hectares, up 5% from last year.
The export demand for Indian Chilli is good. The mandatory quality testing of chilli and chilli products by the Board has made the Indian chilli more acceptable in the international markets and helped to achieve this higher level of export in chilli. Chilli exports registered growth of 33 percent to 56,750 tonnes while export revenue gained 39 percent to 34,943.25 lakh during April-June 2010.
Source : indiainfoline.com
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