Fresh buying seen in Cardamom; Support seen at 939.2

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Cardamom on MCX settled up by 0.93% at 945.3 supported by rising demand in the spot market. Further, restricted supplies from producing regions and rising domestic as well as export demand in the spot market also fuelled the uptrend. The cardamom farmers, who had heaved a sigh of relief following a slight rise in the prices of the cash crop, are now back to square one as a result of the decaying disease that has afflicted the crop in the heavy rains. Earlier, while the crop wilted in the scorching summer heat, it is the incessant rain lashing the high ranges that has played spoilsport now. Last year, cardamom harvest was done twice during the same season.

In stark contrast, the crop could not be harvested even once this year. Small cardamom markets were showing a steady trend last week on matching demand and supply at auctions held in Kerala and Tamil Nadu. Good colour bold capsules were fetching Rs. 20 more per kg while that of inferior quality was being sold at Rs. 10-20 less, market sources said. At auction held by the Cardamom Planters’ Association (CPA), the average price remained by and large steady at Rs. 735.31 a kg against Rs. 734.92 the previous Monday.

Today’s arrivals were at 11 tonnes and almost the entire quantity was sold. The maximum price was at Rs. 979 a kg. Arrivals continued to show a declining trend.Technically market is under fresh buying as market has witnessed gain in open interest by 1.73% to settled at 883 while prices up 8.7 rupee, now Cardamom is getting support at 939.2 and below same could see a test of 933.1 level, and resistance is now likely to be seen at 950.2, a move above could see prices testing 955.1.

Trading Ideas:
–Cardamom trading range for the day is 933.1-955.1.

–Cardamom prices ended with gains supported by rising demand in the spot market.

–Further, restricted supplies from producing regions and rising domestic as well as export demand in the spot market also fuelled the uptrend.

–Last year, cardamom harvest was done twice during the same season, in stark contrast, the crop could not be harvested even once this year.

–Cardamom prices in spot market gained by 11.90 rupees and settled at 920.00 rupees.

Courtesy: Kedia Commodities

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