NCDEX Chill Updates

Chilli futures declined on profit taking of the last five sessions gains. The weak export demand and strong crop size is limiting the gains. The NCDEX Chilli November contract ended the day at Rs 4972, down Rs 72 or 1.43% from last close.Chilli 334 prices were quoted at Rs 5,300-5,500 per quintal in the Guntur spot market. The total arrivals stood steady at 25,000 bags (5,000 bags of Khammamteja).

Lower export demand has been dragging chilli prices down. The prices are expected to remain low in the coming months as harvesting of the new crop begins in December.Expectations of better output in Guntur, one of the major chilli-growing areas in the country, have also led to a decline in prices. Since August, arrivals from Madhya Pradesh have been good and the output from the state is expected to be 20 per cent higher this year. On the other hand, carry-forward stocks are at least 15 to 20 lakh bags higher than usual.

Chilli futures November contract tumbled Rs 1800 or 27% from the August first week high Rs 6600 to the low of Rs 4800 level in October. The counter witnessed relief rally of Rs 260 towards Rs 5066 level, however, dipped thereafter with counter hitting back low of Rs 4944 level. The NCDEX Chilli November contract ended the day at Rs 4972, down Rs 72 or 1.43% from last close. The open interest declined 540 long position, indicating profit taking.