Chilli heads south

COMMODITY SPIKES

Lacklustre demand, both in the domestic and overseas markets, has kept the chilli futures in check. The week ahead will be no different. Market sources said piling stocks in cold storages, arrival rates of 30,000-35,000 bags (each of 35 kg) and overall trade of less than 15,000 bags a day have held the futures prices from going northwards.

Last week, a slight spurt in demand from Bangladesh did stoke some bullish sentiments in the market, but prices could not sustain at high levels for long and ended the week below the previous week's close.

Traders said with the new crop expected by October and output estimated to be higher than that of the last year, chilli prices in the short and long terms may not be bullish.

On the National Commodity and Derivatives Exchange (Ncdex), the near month contract closed at Rs 3,832 a quintal last week after reaching a high of Rs 3,980 a quintal during the week.