| Date: |
21-02-2011 |
| Subject: |
Chilli Futures Likely To Gain Upward Momentum |
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Chilli futures declined on profit taking of previous gains on slight increase in the arrivals in the Guntur mandi. The arrivals were in the range of 20,000 bags -65,000 bags per day and 334 Chilli quoted at Rs. 8400, down Rs. 800 over last week.
March chilli contract on NCDEX ended the week with loss of 4.54% at Rs. 9916 per 100 kg. Chilli may gain on strong export demand and lower projected crop with resistance at Rs. 10,160 and support at Rs. 9900.
As per latest data release by Spice Board of India , during the April to December period, chilli exports showed a 22% rise in quantity to 1.79 lakh tonnes . Chilli prices are expected to move higher in long term on strong fundamentals.
As per market sources, the total chilli production of the current year (2010-11 ) is likely at 250 lakh bags ( 1 bag = 40 kgs ) ,down 16% from the last year. This was mainly due to unseasonal rainfall during the crop formation period in major chilli producing states such as Andhra Pradesh and Maharashtra.
Source : indiainfoline.com
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