Daily Chilies Report--
FUNDAMENTAL FACTORS & PRICE DRIVERS
• At Guntur mandi, 30,000 bags (1bag = 45Kg) arrival is seen and the traded loose price
remained steady between 3800 to 4100 Rs/qtl.
• The chilli futures prices fell to new contract low on Thursday on extended selling pressure backed by bearish fundamental factors.
• Higher stock of chillies in cold storages and anticipation of higher production due to increased acreage had a bearish effect on the market. Poor spot market demand also weighed on the market.
• As per Andhra Pradesh Ministry of Agriculture, Acreage under chilli sowing has increased to 0.47 lakh hectares from 0.17 lakh hectares in the same period last year
• Investors are in wait and watch situation as next crop estimates are likely to come in August end which will clear picture of coming future trend.
• As per Spices Board data, international price of Chilli in New York market was $2.43 per kg during the week ended 13th August 2010, which was higher than $2.32 per kg quoted in the same period last year
• Stockiest and trades are holding back their stocks, as chilli prices continue to drift lower.
• Approximately 35% of sowing is done in and around Guntur .
• Export of Indian chillies has crossed 2 lakh tonnes in 2009-10 due to drop in Chinese production and may witness ample demand until the new Chinese crop comes to the market in October or November.
• In Guntur, majority of the cold storages are still full with Chilli stocks. Trade sources report the stock position close to 1.15 crore bags (40Kg) across Andhra Pradesh with 40 lakh bags in Guntur alone.
• Trade sources also report that the Bangladesh buyers/stockiest are also replete with stocks that they have emerged as major suppliers to Chinese market.
FUNDAMENTAL FACTORS & PRICE DRIVERS
• At Guntur mandi, 30,000 bags (1bag = 45Kg) arrival is seen and the traded loose price
remained steady between 3800 to 4100 Rs/qtl.
• The chilli futures prices fell to new contract low on Thursday on extended selling pressure backed by bearish fundamental factors.
• Higher stock of chillies in cold storages and anticipation of higher production due to increased acreage had a bearish effect on the market. Poor spot market demand also weighed on the market.
• As per Andhra Pradesh Ministry of Agriculture, Acreage under chilli sowing has increased to 0.47 lakh hectares from 0.17 lakh hectares in the same period last year
• Investors are in wait and watch situation as next crop estimates are likely to come in August end which will clear picture of coming future trend.
• As per Spices Board data, international price of Chilli in New York market was $2.43 per kg during the week ended 13th August 2010, which was higher than $2.32 per kg quoted in the same period last year
• Stockiest and trades are holding back their stocks, as chilli prices continue to drift lower.
• Approximately 35% of sowing is done in and around Guntur .
• Export of Indian chillies has crossed 2 lakh tonnes in 2009-10 due to drop in Chinese production and may witness ample demand until the new Chinese crop comes to the market in October or November.
• In Guntur, majority of the cold storages are still full with Chilli stocks. Trade sources report the stock position close to 1.15 crore bags (40Kg) across Andhra Pradesh with 40 lakh bags in Guntur alone.
• Trade sources also report that the Bangladesh buyers/stockiest are also replete with stocks that they have emerged as major suppliers to Chinese market.
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