Chilli futures to trade weak on poor demand: Fortune Fin

Fortune Financial Services has come out with its report on agri commodities. According to the research firm, among spices chilli futures are expected to trade weak due to poor demand amid concerns over inferior quality of the spice.

Soybean prices were also down as outlook in the near term is seen weak as the US Department of Agriculture is likely to release bearish data Friday. Soyoil futures on NCDEX ended sharply down tracking over 1 percent fall in spot price of the cooking oil in Indore. Rebound in rupee against the dollar in last hour of trade also dragged soyoil and crude palm oil prices on MCX lower despite positive close in benchmark Malaysian contract. Mustard futures shrugged off the fall in arrivals for the fourth consecutive session and ended down tracking sluggish demand for mustard oil and meal in spot market. Maize futures ended up as lack of staggered delivery allocation in May contract encouraged speculative long positions in the contract. Mentha oil futures on MCX closed down on thin demand and high supplies. Among spices, chilli futures ended down 4 percent tracking the spot market, where prices fell on subdued demand ahead of spot market holiday from May 13. Inferior quality of the spice also dragged chilli prices down. Coriander futures ended lower on subdued trading activity in spot market due to the marriage season. Turmeric futures ended down 4 percent in absence of export orders amid high arrivals compared to last year. Positional View: Among spices, chilli futures are expected to trade weak due to poor demand amid concerns over inferior quality of the spice. Thin trade in the key Guntur wholesale market in Andhra Pradesh ahead of its annual summer break is also likely to weigh on prices. Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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