Bearish trend continued in chilli market in the wake of fresh arrivals in major mandies along with strong production estimates. The futures pared almost Rs 500 per quintal in the last two days.
As per market sources, fresh supplies of around 55000-65000 bags that were reported at Guntur mandi with the price range of Rs 5000-5400 per quintal for 334 quality and Rs 5400 per quintal for Teza quality. Traders are expecting that arrivals will gain momentum in the coming days.
Moreover, the total chilli production in the current year is likely at 2.70 crore bags against 2.50 crore bags that were reported last year. This is mainly due to strong production in Andhra Pradesh as total production is likely to be augmented by 15 lakh bags to 1.65 crore bags in the current year.
Consequently, the NCDEX February contract pared Rs 500 per quintal in the last two trading days to currently trade at Rs 5590 per quintal.
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