Chilli Futures Likely To Be Pessimistic

Chennai: Chilli futures and prices are likely to be pessimistic in the coming weeks despite the start of the festive season ahead. Overseas demand sees in August and September, while domestic demand too picks up in August. Sluggish demand coupled with ample supply was keeping the spot market weak and it is likely to reflect in the futures market. The August contract traded weak and closed during the weekend at Rs 3,830 a quintal.
Chana prices are likely to continue within ranges, with a positive bias. Arrivals were down in Madhya Pradesh and Rajasthan, while Maharashtra and Karnataka were seeing stock shortage besides good demand. Spot prices moved in a narrow range of Rs 2,340-80 a quintal for the Rajasthan variety. On NCDEX, the August contract closed at Rs 2,342. Soyabean oil prices are hoped to improve slightly, while guar prices could rule weak in view of projections of heavy rains in the growing areas.