India chilli futures extend gains on export hopes

MUMBAI, July 4 (Reuters) - Indian chilli futures extended
gains on Friday on short-covering driven by a likely rise in
export demand, amid shortfall of quality produce in warehouses,
analysts said.

Warehouses are packed with chilli stocks, but bulk of the
stock is of poor quality that cannot be exported, said an
analyst at Religare Commodities.

Andhra Pradesh, the biggest producer, received unseasonal
rains in March, which affected the quality of the crop.

"Export demand for quality produce is likely to increase in
coming days. But, good stocks are very low, and traders are
unlikely to release them at lower levels," said an analyst at
Bonanza Commodity Brokers Pvt Ltd.

In Guntur, a key spot market in Andhra Pradesh, price rose
32 rupees to 4,824 rupees per 100 kg.

Following are the closing prices of chilli futures in
rupees per 100 kg on the NCDEX. <0#NCB:>:

Contract Reuters code Closing price Change in %

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Aug NCBQ8 5,205 0.39

Oct NCBV8 5,484 0.59

(Reporting by Rajendra Jadhav; editing by Harish Nambiar)