Chillies witnessed a bit of strength yesterday as the markets remained closed for most part of the week. Strong buying interest at spot market pushed the prices. However, prices are likely to take decent corrections on profit selling on higher levels. Nonetheless, active buying at spot market by local trader might support the prices at lower levels. Arrivals at spot market of Guntur were reported around 50,000-60,000 bags yesterday with steady spot market activity. Traders bought actively at spot as market had opened after 3-4 days off and market will also be closed in May for a month. According to traders, around 40 lakh bags have arrived till now and further 30-40 lakh bags might come till May. As per market sources, fresh crop arrivals are likely to remain till early May. As per news sources, export demand from Bangladesh, Malaysia is good which is supporting the prices. Thus stockist demand may keep the markets firm. Turmeric prices also saw a positive trend with stockiest buying at lower levels expecting the price to move up further. However, sudden rise in arrivals due to prevailing higher prices might limit the gains. Daily arrivals at Erode and Nizamabad spot markets were 15,000 bags and 15,000 bags respectively. As per trade estimates, around 50% of new crop has been come to the market and further 50% is likely to arrive by may end. As per trade sources, turmeric production in 2011 is estimated around 64 lakh bags against 45-48 lakh bags last year (Each bag=70Kg.). Jeera arrivals are at full swing and this is pressurizing the prices. However, prices are likely to witness a smart recovery at lower levels during the day. Average daily arrivals at spot market of Unjha are reported around 30,000 bags (Each bag= 55Kg.). Export demand from gulf countries is also very poor which might weigh on sentiments. However, overall production forecast is down by 10-25% Y/Y which might support the prices in medium to long term. Tread carefully. |
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