India Red Chilli Set To Plunge Further .

India Red Chilli futures plunged on profit selling with the benchmark November contract on NCDEX ended the day lower by four percent at Rs. 5015 per 100 kg and the open interest dipped 22.08 percent to 2,060 tonnes.

The contract dipped and closed below the 9-day and 20-day EMA's and continued to close above the 50-day EMA. The contract is at support levels and trend will be further weak below the level Rs. 4932 and at Rs. 4907. Meanwhile, the contract has resistance at Rs. 5050 and at Rs. 5150 per 100 kg.

Chilli Arrival in the Guntur mandi was in the range of 50,000 bags on Monday and the 334 Chilli quoted at 4800 per 100 kg. Teja also quoted Rs. 6,800 and No.5 quoted at Rs. 5,000. Chandarmukhi quoted steady in the range of Rs. 4,200- 4,800 per 100 kg.

The latest updates from the Andhra Pradesh agriculture department shows that, the area under Chilli as on 20th October 2010 stands lower at 1.24 lakh hectare against 1.56 lakh hectare same period last year and against the normal area of 1.57 lakh hectare.

As per the latest updates from Spices Board of India, Chilli exports registered growth of 35 percent to 102,750 tonnes while export revenue gained 35 percent to 63,174.25 lakh during the period April-August 2010. Export of Chillies was 8.5 per cent up in volume and 19.4 per cent in value in 2008-09 comparing 2009-10.

Due to increased cold storage capacity in Andhra Pradesh, carryover stocks are more this year. Compared to 0.8 lakh tonnes last year, this year's stocks are around 5.5 lakh tonnes.

Source : indiainfoline.com