Chilli futures set to bounce back on sowing delay

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Future prices of chilli (LCA 334 grade) on the national bourse are set to bounce back and expect to rule higher in the next few days mainly on reduced warehouse stocks, steady demand for export and slow progress of sowing in the chilli-growing areas, mainly Andhra Pradesh.

Chilli-futures prices on the NCDEX fell by Rs 280-Rs 300 per quintal this week on increased inflows. Chilli August contracts on the NCDEX platform were down Rs 286 a quintal to trade at Rs 5,549 per quintal on Thursday over last week, while October contracts slipped below Rs 6,000-mark and settled Rs 299 lower at Rs 5,966 a quintal on continued offerings. Physical stock with the farmers has come down and farmers’ arrivals may continue for next week or fortnight, a local trader said. Total arrivals increased to 45,000-50,000 bags a day were offloaded by farmers before going for new sowing, sources said. Spot prices at the Guntur mandi declined by Rs 50 to trade at Rs 5152 a quintal on Friday.