Fresh buying seen in MCX Cardamom

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Cardamom on MCX settled up by 1.48% at 1334.2 on the back of rising domestic as well as exports demand in the spot market. Cardamom output is likely to fall sharply this year due to adverse weather in all the producing areas of south India. There were almost no rains for nearly 6 months in Kerala, which hit the plantations badly which resulted in fall in output. India exported 1,150 ton cardamom during Apr-Jun up 25% on year. Total arrivals during the season from August 1 to September 3 were at 2,110 ton and sales were at 1,937 ton. At Kochi market, estimated market supply was at 53430 kgs, lower by 25172 kgs from previous trading day.

The dry spell, prevailing in the growing regions of Idukki district, where 75 per cent of the cardamom is grown, is signalling of a further drop in the crop. Decline in the north-east monsoon which is expected in the coming days would result in severe water shortage in the growing areas. Harvesting is in full swing now in all the estates and according to the trade in Bodinayakannur 75 per cent of the capsules arrived was from the new crop and that was fetching good price while the remaining 25 per cent from the previous crop was fetching comparatively low price.

Technically market is under fresh buying as market has witnessed gain in open interest by 2.66% to settled at 771 while prices up 19.5 rupee, now Cardamom is getting support at 1328.4 and below same could see a test of 1322.7 level, And resistance is now likely to be seen at 1341.4, a move above could see prices testing 1348.7.

Trading Ideas:
–Cardamom trading range for the day is 1322.7-1348.7.
–Cardamom prices gained on the back of rising domestic as well as exports demand in the spot market.
— Cardamom output is likely to fall sharply this year due to adverse weather in all the producing areas of south India.
— There were almost no rains for nearly 6 months in Kerala, which hit the plantations badly which resulted in fall in output.
— Cardamom prices in spot market gained by 4.90 rupees and settled at 1189.10 rupees.

Courtesy: Kedia Commodities

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