Commodity Agro Updates

Chilli futures ended the day with heavy losses as heavy long liquidation continued. Fresh crop arrivals from Madhya Pradesh amid strong stocks with major mandis added selling in the market. The NCDEX Chilli November contract ended the day at Rs 4844, down Rs 100 or 2.02% from last close.

Chilli 334 prices traded steady at Rs 5,200-5,500 per quintal in the Guntur mandi. The total arrivals slipped to 20,000 bags (4,000 bags of Khammam teja) today from 25,000 bags on previous day.

Fresh arrivals from Madhya Pradesh are likely to augment to almost 80000-90000 bags in the coming days. Fresh arrivals will also increase from Maharashtra in the coming 15-20 days. Strong carryover stocks in the major producing states on the account of sluggish export demand might also pressurize the prices in the coming days. Traders estimated that total stocks of around 48-50 lakh bags have been reported in the cold storages of Andhra Pradesh, Karnataka and Maharashtra.

Chilli failed to hold above Rs 5 k per quintal level and dropped to new lows on long liquidations. The counter closed the day at Rs 4844, down Rs 100 or 2.02% and the open interest dipped 9% to 4,980 tonnes, indicating long liquidations.