The Hindu Business Line : Red chilli futures price seen firm

Prospects
Chilli inflow into market down to 35,000-40,000 bags from 60,000 bags.
Domestic zinc could rule firm in line with global prices.
Refined soya oil may rise on pick up in local demand.

Mumbai , April 24

Red chilli futures prices are likely to continue ruling firm on sustained local buying interest amid reduced inflows at the major terminal markets, according to traders.

Red chilli LCA 334 (pala) June contracts on the NCDEX platform were up Rs 400-410 to rule at Rs 4,976 a quintal (ex-Guntur) during the weekend over previous week's close of Rs 4,489 a quintal on continued buying interest amid reduced offerings on reports of reduced supply.

July contracts were up Rs 530 to Rs 5,280 a quintal over previous week's close of Rs 4,750.

LOW SUPPLY

"Futures prices may rule higher as overall supply is expected to be low this season. However, demand from exporters was limited," a trader said.

In the physical market, spot prices of LCA 334 (pala) variety were up Rs 400 to Rs 3,650 a quintal over previous week on reports of reduced inflows from average 60,000 bags to 35,000-40,000 in the Andhra Pradesh.

Zinc may rise

Zinc futures prices may rule higher on continued buying support in response to strong global trend.

Zinc May 2006 contracts prices on the MCX platform were up Rs 9 to Rs 164 a kg during weekend (ex-Bhiwandi) from the previous week close of Rs 155 on continued local buying support. Zinc May contracts prices touched a new high of Rs 179 a kg last week. Trading volume was good and increased from average Rs 300 crore to Rs 600 crore last week.

"Prices may move up further in line with firmness in global prices," a trader said.

Spot prices at the Bombay Metal Exchange were up Rs 11 per kg to Rs 180 a kg on continued industrial buying.

Soya oil to rule firm

Refined soya oil futures prices are expected to rule steady-to-firm this week on sustained local buying interest supported by firm overseas market.

Refined soya oil (RSO) May contracts on the NCDEX platform were steady around Rs 404.35 per 10 kg (ex-Indore), down from previous week's close of Rs 406.35 per 10 kg after touching a high of Rs 409 per 10 kg.

"Local offtake is likely to pick up this week due to the marriage season," a local broker said.

Spot prices of refined soya oil in the Indore market were around Rs 395-400 per 10 kg last week. Soya oil futures gained in the CBOT and uncertainty over the GMO imports may defer any huge shipments.

"These two factors may help the cause of the bulls in the medium term," said an analyst with Karvy Commodity Research.