Chilli: May gain flavour

COMMODITY SPIKES

Chilli futures, which dropped last week on the back of fresh arrivals, may see some strength next week. Since mandis will remain closed from Wednesday onwards due to festivals, commodity analysts said prices may not see a substantial crash in prices.

According to them, overseas buying, mainly from Pakistan, may support the falling prices. A further fall of around Rs 50 a quintal was anticipated but the market might recover before the closing of mandis, said analysts at Angel Commodities.

They said that the commodity had a resistance at Rs 4,241 a quintal for April futures, which the market would try to reach. Last week, daily average arrivals in the market remained above 100,000 bags (40 kg each), which earlier in the month were ranging between 40,000 and 70,000 bags a day.

Due to falling prices, trading sources said that sellers might refrain from bringing their stocks in the mandis. The crop size is over 25 million bags.

On the National Commodity and Derivatives Exchange, the contract for April delivery closed at Rs 4,011, down 10.35 per cent from the previous week's close of Rs 4,474 a quintal.