Chilli prices rose higher on the back of good export. Importers have been motivated towards Indian Chilli due to lower output in China and Pakistan. Arrivals are however rising in the domestic market. Around 90,000 bags of 40-45 kilo are reportedly arriving in the auction center of Guntur as against 50,000-60,000 bags last week. Chilli production this year is expected to be higher around 13 lakh tonne as against 11.5 lakh tonne last year. However, the output could be affected by the recent rains. Carry over stock from the previous year is estimated around 1.5 lakh tonne. Higher arrivals in the coming days are likely to pressurise the market at higher price level. Chilli export during April 2007-February 2008 is higher around 169,000 tonne as against 123,330 tonne during the year-ago period.

Sugar: To be flat
Sugar is to trade flat on adequate supply in the domestic market. Lower buying support amidst good stock is likely to resist rallies in the commodity. Good supply from Uttar Pradesh is reported. However, increasing buying of ethanol is likely to limit major dips.

Maize: Gradual recovery
Prices remained steady in major domestic markets due to lower buying support against the backdrop of higher production outlook. Market tone is weak due to bird flu outbreak in West Bengal and Tripura. However good export opportunity, increase in domestic consumption and talk of crop loss in Andhra Pradesh are likely to lead to a recovery.

Guar: To be range bound with positive bias
Guar is expected to trade range bound with a positive bias on buying support against the backdrop of meager arrivals in the major domestic markets. However, stockists kept themselves at sidelines from big purchasing and are likely to liquidate their holding at higher price level. However, good export demand of guar gum is likely to support the market.