MCX Cardamom may trade 884-917.4 range

0
389

Cardamom settled down by -0.14% at 903.5 on profit booking after prices gained on account of good buying support from exporters and upcountry buyers. Arrival of good quality material was thin at a time when there was a good domestic demand and this phenomenon has pushed up the prices of good capsules. Many small and medium dealers who needed small volumes were covering anticipating a delay in the arrival of the next crop.

The next crop is also expected to be less and likely to hit the market only by next month end. Arrivals were at 16.8 tonnes and of this 12.8 tonnes were sold. The individual auction average was vacillating between Rs.746 and Rs.822 last week. Total arrivals during the season up to July 9, 2016 were at around 32,765 tonnes and sales were at 31,545 tonnes. Cardamom output during the current year 2015-16 (Aug-July) is estimated over 30,000 tons as against earlier projection of 22,000 tons.

India’s 2015-16 cardamom export rose 5,500 ton from 3,795 ton a year ago, showing a smart growth of 45%. During the past 3-4 years, the crop was available because of favourable weather conditions. However, the situation has changed this year and due to the drought conditions and the harvest having ended in March there is going to be a gap of four months for the next crop to enter the market.

Trading Ideas:

–Cardamom trading range for the day is 884-917.4.
–Cardamom prices ended with losses on profit booking after prices gained on account of good buying support.

–Many small and medium dealers who needed small volumes were covering anticipating a delay in the arrival of the next crop.

–The next crop is also expected to be less and likely to hit the market only by next month end.
–Cardamom prices in spot market gained by 6.90 rupees and settled at 882.90 rupees.

Courtesy: Kedia Commodities

LEAVE A REPLY

Please enter your comment!
Please enter your name here