Chilli Futures Touches Upper Circuit - Oct 15, 2008

Mumbai: Chilli futures remained to gain strength touching the upper circuit for the second consecutive day. Strong demand in the Guntur spot market on Oct 14 pushed up chilli futures by 3 per cent to Rs 5,673 a quintal. Maize touched the upper circuit of 2.98 per cent at Rs 846 a quintal on good purchasing interest at lower levels besides rise in spot prices amidst thin arrivals.

Turmeric increased 1.98 per cent to Rs 3,562 a quintal on the back of short covering after recent down side movement. Soybean increased 1.06 per cent to Rs 1,667 a quintal on short covering. Jeera and pepper declined slightly by 0.21 per cent and 0.17 per cent to Rs 10,251 a quintal and Rs 12,940 a quintal. On MCX, mentha oil and crude palm oil increased 2.57 per cent and 0.58 per cent to Rs 554 a kg and Rs 311/10 kg, respectively. Cardamom declined 1.06 per cent to Rs 653 a kg on sluggish demand for the produce.

Chilli Futures Attain Lower Circuit - Sep 25, 2008

Mumbai: Lack on significant export enquiries declined chilli futures in NCDEX by 2.36 per cent to Rs 5,248 a quintal. Jeera declined nearly 2 per cent to Rs 10,557 a quintal on low demand coupled with stockists unwinding their inventory in anticipation of a good crop in the coming season. Turmeric shed 1.23 per cent to Rs 3,760 a quintal on long liquidation. Pepper was down slightly at Rs 13,255 a quintal. Rape/mustard seed futures increased 2 per cent at Rs 604 for 20 kg on good demand. Short covering increased soyabean futures 1.04 per cent to Rs 2,049 a quintal. Castor seed recovered 1.05 per cent to Rs 616 per 20 kg on firm edible oil prices. In MCX, menthe oil futures declined 0.96 per cent to Rs 627 a kg on the back of weak demand in spot markets. Cardamom was down 2.35 per cent to Rs 686 a kg on long liquidation after the recent rally.

Chilli Futures Extend Losses On Arrival Pressure - June 25, 2008

Chilli futures in NCDEX have extended losses due to arrival pressure in the spot market. In NCDEX, Chilli August was quoted at Rs 5372, down 1.29 % at 13:30 IST, after trading as low as Rs 5355. Trading has been resumed in the main spot market at Guntur since Monday after a strike by traders demanding compensation to farmers and traders who had incurred losses in a fire last month. The Guntur market had earlier been closed for annual summer holidays since the last week of May and was supposed to open on June 9th; but accounting the lost trading days due to the strike, the re-opening of the market is after effectively a month. In the morning session, chilli was quoted at Rs 4840, down Rs 67 a quintal.

Chilli Futures In NCDEX Hit The Upper Circuit Of 4 Pc

Mumbai: Chilli futures in NCDEX on Thursday hit the upper circuit of 4 per cent at Rs 5,203 a quintal in anticipation of shortage of best quality stock and rising demand.

Jeera gained 1.70 per cent at Rs 11,615 a quintal on improved export demand. Barley was up 1.68 per cent at Rs 1,303 a quintal on account of firm Jaipur spot market.

Sugar gains

Sugar and mustard seed rose 1.67 per cent and 1.45 per cent to Rs 1,457 a quintal and Rs 635 per 20 kg.

Guarseed and gum fell marginally by 0.96 per cent and 0.8 per cent at Rs 4,554 a quintal and Rs 1,865 a quintal on good progress of monsoon.

Cocud shed 0.64 per cent to Rs 447 per 50 kg on steady spot markets. Castor seed and pepper dipped 0.47 per cent and 0.41 per cent at Rs 529 per 20 kg and 15,259 per quintal.

Cardamom on MCX was up 0.84 per cent at Rs 664 a kg.

MCX recorded a turnover of Rs 8,856 crore up to 5 pm on Thursday.

Trading Resumed At Chilli Market

Guntur: Trading resumed at the chilli market yard here on Monday on a cautious note. About 30,000-32,000 tikkis (bags) were sold with the prices in the range of Rs 3,500 to Rs 4,200 a quintal for the better varieties. Trading was halted in the chilli market yard, the biggest in the country, after the fire on May 3.

Though trading resumed officially on Monday in temporary sheds constructed in the yard for the purpose, there was some trading during the week-end too, with left-over stocks.

According to Nisar Ahmed, Joint Director (Marketing), during the next 10 days or so 10-12 lakh bags of chilli may be brought to the yard and there is likely to be substantial improvement in prices. On Monday, 65,000 bags were brought to the yard, he said.

It is estimated that more than 20 lakh bags of chilli is stored in the cluster of cold storages surrounding the yard. According to a rough estimate, 20 lakh bags of chilli are with the farmers and trading may go on till June 10 or so.

Usually, the trading at the yard starts fizzling out by the last week of May, as farmers’ stocks are exhausted, but this season there has been a fortnight’s halt due to the fire. The season may correspondingly be extended.

L Appi Reddy, Market Committee Chairman, said farmers could bring their stocks without any apprehensions, as fire-fighting equipment were at hand.

Sharp Fall In The Prices Of Chillies

Tiruchi: A sharp fall in the prices of chillies this season has left growers in Tamil Nadu especially around Manapparai and neighbouring Pudukottai, in the lurch.

The produce has registered an all-time fall this year at the whole-sale markets in Manapparai, a major hub for private procurement of agricultural produce.

The fall, wholesale dealers say, is in the wake of bumper harvest of chillies in Andhra Pradesh.

Chilli growers, consumer activists and wholesale dealers say that this is the first time in the last decade that the per bag price of chilli has registered a dip.

Manapparai is a major market for chillies with scores of villages including Balaviduthi, Poolanpatti, Ponnakoundanur, Thavalai Veeranpatti and T. Reddiyapatti accounting for a vast extent of area under the crop.

A bag of 15 kg of chilli fetched just Rs 600, against Rs 800 last year. A farmer, M. Krishnan of Thavalai Veeranpatti village, says he has been raising the crop for the past four decades. The prices of the crop used to register an upward trend every year in the past.

But, huge arrivals of chillies at Guntur has had an adverse impact on the markets in Tiruchi and Pudukottai districts.

The yield too was far below normal.

Fire At Chillies Market Yard Increase Of 10-15 Per Cent In The Prices Of Chilli

Hyderabad: Saturday’s fire at the chillies market yard in Guntur is likely to trigger a temporary increase of 10-15 per cent in the prices of chilli in the open market in the next few days.

The fire mishap in Asia’s biggest chilli market yard had over two lakh bags of chillis gutted. The total loss, including that of the property, has been estimated at Rs 85 crore.

Traders, however, discounted the fears of price escalation in the retail market. “This is just a fraction keeping in mind the total volume of about one crore bags the market yard handles every year. This will not have any major impact on the retail prices,” said K Roshaiah, President of Chilli Traders Association, Guntur.

The market, however, responded immediately. As the news of the massive fire broke out on Saturday, the prices went up by at least Rs 10 a kg. Chilli prices are ruling at Rs 80 a kg in the organised retail shops, while neighbourhood shops are selling it at Rs 60-70.

Estimates put the total arrivals at the Guntur yard for the year at 90 lakh bags (each bag carrying 40-50 kg.) “Of these, about 45 lakh bags have already reached the cold storage units. Farmers still are left with 15-20 lakh bags,” he said.

Short-term impact

Traders, however, admitted to the fact that deliveries to different markets in the country would be hit for a few days, creating a short-term scarcity. “This could result in increase in prices in the short term. In the long run, there won’t be any impact,” he said.

Y. Shivaji, former MP and representative of farmers, said some vested interests were creating panic-like situation, saying that supplies were being hit due to the fire.

“The total production could be around 15 lakh tonnes this year against 12.5 lakh tonnes last year. Unprecedented rains this year could drag down the production to 10-10.5 lakh tonnes. Of this, the loss could be around 6,000 tonnes. This would not have much impact on the market,” he said.

There won’t be any impact on exports too to the neighbouring countries. “We export one-tenth of the arrivals to countries like Sri Lanka and Bangladesh,” he added.

Jeera, Chilli, Turmeric Rise On Demand; Pepper Falls

MUMBAI: Indian jeera futures rose on Friday on reports of rains in Rajasthan and good domestic and export demand, analysts said. There were rains and storm on Friday morning in major jeera growing regions in Rajasthan, which was expected to affect the crop, said Rakesh Jain, a Jodhpur-based trader.

During early trade, the benchmark May contract rose 0.48 per cent to Rs 8,910 per 100 kg.

CHILLI: Indian chilli futures extended gains in early trade due to good export demand and scarcity of quality produce in the spot market, analysts said. During early trade, the benchmark June contract on NCDEX was up 0.7 per cent at Rs 4,720 per 100 kg.

However, profit-taking may emerge in the later part of the day on expected rise in arrivals.

TURMERIC: Indian turmeric futures were up in morning trade on lower output estimates and good demand in the physical market, analysts said. During early trade, the benchmark May contract on the NCDEX was up 0.96 per cent at Rs 3,268 per 100 kg.

However, rising arrivals in peak harvesting season may restrict gains.

PEPPER: Indian pepper futures were trading lower on sluggish export demand due to lower prices in Vietnam, analysts said. Vietnam is the largest pepper producer and exporter, while India is the second largest. During early trade, the benchmark May contract was trading at Rs 15,145, down 0.28 per cent.

Fresh Chilli Plant To Go On Stream In Byadagi

Thiruvananthapuram: The Union Minister of State for Commerce, Jairam Ramesh, will on Friday inaugurate a fresh chilli processing plant at Byadagi in Karnataka. This is expected to help the cause of the chilli trade in the country. Being set up by the Thiruvananthapuram-based National Institute for Inter-disciplinary Sciences and Technology (NIIST) on a turnkey basis, the plant will have a capacity to process 20 tonnes of fresh chilli per day.

This is one of many such turnkey ventures involved in by the NIIST, an affiliate of the Council of Scientific and Industrial Research (CSIR), said Dr. T.K. Chandrashekar, Director. Pioneers in the oilseed and spice processing technology, the centre has extended technical expertise to regions as far as Manipur and Meghalaya. The next venture is expected to come up in the state of Sikkim.

This plant will produce quality “Byadagi chilli” in rich colour to stringent international standards and free of aflatoxins. Unlike the conventional process of sun-drying the fresh chilli, the garden-fresh produce will be converted into the end product within a few hours of reaching the factory.

COLOUR VALUE

This will ensure an end product with a colour value at least 20 per cent higher than what would have been possible through conventional means. The sun-drying process would take 10 to 12 days, and will lead to improper drying, loss of carotenoids, propagation of aflatoxins, apart from accumulation of dust and bird droppings.

The chilli prices are determined by the moisture content, high colour value and low aflatoxin levels. The processing technique adopted at this unit will ensure a premium product which is commercially viable, Dr. Chandrashekar said. The washing of the fresh chilli prior to processing in Byadagi plant will ensure the removal of adhering mud and dust and surface pesticides, if any.

“The enhanced colour value will fetch a proportionate increase in prices and with the marketing expertise of our client this unit is going to be a trend setter in the chilli processing sector in the years to come,” he said. The chilli growers of the region would be the major beneficiary of this project, he added.

Chilli Futures Hit Lower Circuit

Mumbai: Chilli hit the lower circuit of 4 per cent at Rs 3,937 per quintal due to increase in arrivals at the Guntur spot markets.

Turmeric plunged 3.69 per cent at Rs 3,183 per quintal on long liquidation after the heavy rally.

Chana too hit the lower circuit at 3.99 per cent at Rs 2,812 per quintal as spot markets remained weak on robust arrivals.

Taking cues from weak international markets, RM seed fell 3.43 per cent at Rs 606 per 20 kg. Guar seed tumbled by 3.41 per cent to Rs 1,900 per quintal on panic selling after European Union reportedly laid down new measures on guargum exported from India.

Tracking the firm spot market in Jaipur, barley futures gained marginally to Rs. 1,086 per quintal.

On MCX, mentha ended was down 1.74 per cent at Rs 445 per 20 kg, while potato lost 0.74 per cent to Rs 589 per quintal. While menthe fell on long liquidation, potato prices dipped on increase in arrivals and lack of buying from stockists.

MCX recorded a turnover of Rs 6,780 crore up to 5 pm on Wednesday, while it was Rs 3,473 in NCDEX.

Chilli, Jeera Hit Upper Circuit

Mumbai: Buoyed by the tight supply at the Guntur spot markets, chilli futures on NCDEX hit the upper circuit at 3.67 per cent to Rs 4,185 per quintal. Budget 2008-09

Jeera also hit the upper circuit of two per cent at Rs 9,527 per quintal on improved buying activities in spot markets. Robust export demand on the back of thin supply propped up pepper futures by 1.2 per cent to Rs 15,780 per quintal.

Rape and mustard seed and maize prices increased 0.62 per cent each to Rs 587 per 20 kg and Rs 814 per quintal. Fresh buying on firm spot market coupled with strong export demand in the market boosted maize prices while RM seed recovered on speculative buying supported by strong fundamentals.

Barley futures dipped 0.89 per cent to Rs 1,022 per quintal on long liquidation after the recent rally. Chana for March delivery shed 0.82 per cent to Rs 2,799 per quintal on profit taking as spot prices remained weak across major markets. Kapas was down 0.62 per cent at Rs 512 per 20 kg on profit taking and weak global markets.

On MCX, potato futures were close to the upper circuit at 1.99 per cent to Rs 640 per quintal on stockiest buying.

MCX recorded a turnover of Rs 5,547 crore up to 5 pm on Thursday while it was Rs 2,498 crore.

Gold futures ease

Reuters reports: Gold futures opened down on Thursday as foreign markets took a breather from the previous day’s records, but analysts said it could aim for fresh highs owing to the the weak outlook for the US economy.

“Gold may go down a bit and then come up again,” said an analyst at IL&FS Investsmart Commodities Ltd.

Overseas gold was slightly lower than the previous day, but still very much in sight of its record $964.70 an ounce reached the previous day.

A technical analyst Mr Aurobinda Prasad at Karvy Comtrade Ltd said the April gold contract on the Multi Commodity Exchange of India Ltd could aim for Rs 12,350 per 10 gm if it manages to stay above its support of Rs 12,170.

April gold on MCX touched its all-time high of Rs 12,291 on Wednesday.

Open interest for April gold was at 11,319 lots, up from the previous day’s 11,277. Volume on Wednesday was at 53.81 kg.

Stock Shortage Helps Chilli Futures Gain

Mumbai: Chilli futures on NCDEX edged up 0.92 per cent to Rs 4,040 per quintal on firm Guntur spot markets. “Shortage of stock on the back of rising demand lead to speculative buying,” said a trader.

Maize prices went up 0.78 per cent to Rs 771 per quintal on fresh buying. Soyabean ended firm at Rs 2,120 per quintal on strong international market.

Jeera fell 1.52 per cent to Rs 10,362 per quintal on profit taking after the recent rally. Pepper tumbled 0.95 per cent to Rs 14,711 per quintal on long liquidation. Guar seed lost 0.77 per cent to Rs 1,805 per quintal on weak spot markets.

Chana down

Chana and sugar futures lost 0.7 per cent and 0.66 per cent at Rs 1,413 per quintal and Rs 2,417 per cent quintal on profit booking.

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MCX recorded a turnover of Rs 6,296 crore up to 5 pm, while it was Rs 2,562 crore in NCDEX on Tuesday.

Chilli May Be Range-Bound In Short To Medium Term

Mumbai: Chilli for March delivery on NCDEX is expected to trade range-bound in the short to medium term under a weak undertone.

Stockists are now clearing inventories before new arrival begins early next month.

Chilli production in 2007-08 is expected to be around 13.5 lakh tonnes against 11.5 lt logged last year.

“High spot prices in first quarter of 2007 prompted many farmers to take up chilli cultivation in large scale,” said Harish Galipalli, Head of research, Karvy Commodities.

Andhra Pradesh output

Andhra Pradesh contributes 53 per cent of the total chilli output followed by Karnataka - 9 per cent, Orissa and West Bengal - 6 per cent, Maharashtra - 5 per cent and Madhya Pradesh - 4 per cent. Other States total the balance.

In Andhra Pradesh, Guntur alone contributes 30 per cent of the State’s output, followed by Warangal, Khammam, Krishna and Prakasam.

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According to trade estimates, production in 2008 is expected to be higher by 10-15 per cent in Andhra Pradesh and 50 per cent more in Madhya Pradesh. Favourable weather and higher yields are said to be the major reasons for a bumper crop this year.

Global output

Global chilli output is about 40 lakh tonnes a year. With India expected to reap a bumper crop this year, exports are anticipated to touch a new high.

Spice Board of India estimates say export may touch an all time high of 1.9 lt in 2007-08, up by 28.3 per cent against 1.48 lt (Rs 807 crore) shipped last year.

Chilli exports account for 48 per cent in terms of quantity and 28 per cent of the total export of spices from India.

India share

Last year, India accounted for 26 per cent of the global production, followed by China, Pakistan, Morocco, Mexico and Turkey.

Malaysia is the largest buyer of Indian chilli. About 29 per cent of the total export is to Malaysia, followed by Bangladesh 19 per cent, Sri Lanka 15 per cent and US 9 per cent, UAE 8 per cent and others 19 per cent.

China, also a major producer, imported over 900 tonnes from India in 2006-07 due to crop damage.

Chilli Futures Extend Gains On Speculative Buying

NEW DELHI: Red chilli turned hotter at NCDEX as its futures rose up to 3.25% on speculative buying and reports of higher exports this year, analysts said.

“It is just speculative buying and no trader is taking good positions in chilli on Tuesday,” said Hyderabad-based commodity brokerage firm Karvy Comtrade analyst Veeresh Hiremath.

The Spice Board has projected the country’s chilli exports to rise 28% at 1,90,000 tonne in 2007-08, he said, adding that this provided an opportunity to speculate in the commodity’s futures.

Meanwhile, the closure of spot market on account of Makar Sankranti, a harvest festival, also prompted the rally, said an analyst at a Delhi-based commodity brokerage.

At 3 pm, the February delivery of chilli rose by 1.2% at Rs 3,878 per quintal while the March delivery gained 2.92% at Rs 3,880 per quintal. However, the April contract jumped significantly by 3.25% at Rs 3,905 per quintal.

Trade in chilli futures was thin and volume stood at 1,390 tonne. However, analysts said the overall sentiment for chilli futures could be weak because of higher production estimates of around 12 lakh tonne compared to 10.5 lakh tonne produced last year

Chilli Futures Tumble On Weak Demand

Mumbai: Chilli futures in NCDEX tumbled 3.53 per cent on weak demand in the physical market coupled with offloading of old stocks.

Kapas fell 1.42 per cent to Rs 494 per 20 kg on profit taking on recent rally. Guar seed futures dropped 1.36 per cent to Rs 1,737 per quintal on profit booking as spot markets remained steady.

Maize down

Maize prices came down by 1.27 per cent to Rs 780 per quintal due to profit booking after the recent rally. Pepper futures dropped 1.61 per quintal on account of long liquidation coupled with selling pressure in absence of major trigger from international market.

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On MCX, potato prices fell sharply 1.68 per cent to Rs 557 per quintal with cloudy weather getting clearer in northern states. Mentha oil futures traded down 1.36 per cent to Rs 429 per 20 kg on the back of sluggish demand. Kapas prices fell 1.26 per cent to Rs 394 per 20 kg on profit taking.

Turnover

MCX recorded a turnover of Rs 5,802 crore up to 5 pm, while it was Rs 2,645 crore on Thursday.