Cardamom futures ended with losses for the fifth straight session’s on weak demand and strong arrivals. The MCX cardamom March contract ended the day at Rs 865.50, down Rs 25.60 or 2.87% from last close.
Meanwhile, the Spices Board of India said in a press release conflicting reports about imports of cardamom from Guatemala are purported to pull down market prices. Originating from sources that have malafide intentions, the recent reports on import of cardamom contributed to the fall in auction prices. These are misleading reports since in the last nine months a negligible quantity of only 200 tonnes was imported compared to the 8776 tonnes which arrived at the auction centers till February 28, 2013. This accounts for just 2.27% and the average auction price is significantly steady at Rs 767/Kg thus revealing that the imports hardly produced any cascading effect on the domestic auction price of cardamom.
Besides, availability of stocks from last year crop, the reports of gutka ban by the Odisha government trigged selling at higher side. Cardamom may recover in long term, after further correction in the prices in the coming days. India’s crop is projected lower over last year and short fall in the local arrivals is expected in mid December -January period. Local crop is likely to drop by 20-25% from the last year’s crop due to bad weather in the major belts. Cardamom is expected to bounce back in medium term, when arrivals slumps in auctions and on pick up in export orders. Guatemala’s crop with carryover stocks estimated at around 34 thousand tonnes and some infestation will affect mainly the quality of the Guatemala cardamom this season. Guatemala produced a record of 10,000 tons of cardamom in the month of October 2012. Never before in the history of cardamom, had Guatemala produced so much cardamom in one month. This is 40 % of the total production of Guatemala three years back. Guatemala cardamom harvesting runs through October till June next year.
Cardamom dipped Rs 105 or 11% in the last five trading days triggered by weak spot demand amid strong arrivals in the auction markets. Cardamom March contract ended the day at Rs 865.50, down Rs 25.60 or 2.87% from last close and the open interest dipped 937 tonnes to 2,678 tonnes, indicating long position liquidations.
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