MCX Cardamom expected to trade 931.6-953.4 levels

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Cardamom on MCX settled up by 1.01% at 944.4 on anticipation of decline in output following a delay in harvesting at the producing belts. The arrivals continued to show a downtrend as the harvesting has been delayed and almost 90 per cent of material arriving at present is from the stocks held by growers/primary market dealers. As a result, the material held from the previous crop would get liquidated before the harvesting begins in its full swing. Only 10 per cent of the arrivals are from the fresh picking which is taking place in some small pockets that have received isolated showers.

Normally, at this time of the season 90 per cent of the supply used to be of the new crop. It gives the impression that the crop is going to be less by 40-50 per cent due to dry spell and erratic rains. Availability of exportable grade capsules at competitive prices is attributed to the upsurge in the cardamom exports, Punnoose said. Supply of quality material continued to remain squeezed and good colour capsules were fetching good price. Total arrivals during the season up to July 30 were at around 34,013 tonnes and sales were at 32,878 tonnes. The individual auction average for the season stood at around Rs. 640/kg.

The extended dry spell with high temperatures that prevailed from December 2015 to the first fortnight of May 2016 affected the flower setting, thereby delaying the harvest. Technically market is under fresh buying as market has witnessed gain in open interest by 7.51% to settled at 1646 while prices up 9.4 rupee, now Cardamom is getting support at 938 and below same could see a test of 931.6 level, And resistance is now likely to be seen at 948.9, a move above could see prices testing 953.4.

Trading Ideas:

–Cardamom trading range for the day is 931.6-953.4.

–Cardamom gained on anticipation of decline in output following a delay in harvesting at the producing belts.

–The arrivals continued to show a downtrend as the harvesting has been delayed.

–Only 10 per cent of the arrivals are from the fresh picking which is taking place in some small pockets that have received isolated showers.

–Cardamom prices in spot market gained by 2.20 rupees and settled at 916.90 rupees.

Courtesy: Kedia Commodities

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