Resistance seen at 1342.2 for MCX Cardamom

0
286

Cardamom on MCX settled down by -2.16% at 1323.3 tracking weakness in spot demand amid profit booking. However downside seen limited on expectations of lower arrivals due to poor production caused by prolonged dry weather condition in Kerala, the largest producing state. Weak rains during the current northeast monsoon also aided the bullish sentiment as it may impact picking during the current season. Arrivals are likely to decline further in the coming weeks as picking has entered the last phase. In Delhi market, cardamom (Robin) ruled recorded smart gains of Rs 100 per kg due to tight supplies and poor stocks. India exported 1,150 ton cardamom during Apr-Jun up 25% on year.

India’s production is likely to fall by 30-40% in 2016-17 due to unfavourable weather conditions. Prolonged dry weather occurred in the Idukki district, which has severely affected yield of the crop, which was in the flowering stage at that point of time. In many cases, the plants have been partially or fully destroyed due to the dry weather, as many plantations in the region do not have irrigation facilities. The Spices Board had reported in June that cardamom crop loss due to deficient rainfall and high temperature is likely to be up to 20-25% during the 2016-17 crop season.

Damage to plants in Idukki due to drought-like conditions is 5-10%. Board data shows production of small cardamom during 2014-15 pegged around 18,000 tonne from 69.970 hectares. Technically market is under long liquidation as market has witnessed drop in open interest by -19.07% to settled at 628 while prices down -29.2 rupee, now Cardamom is getting support at 1312.1 and below same could see a test of 1301 level, and resistance is now likely to be seen at 1342.2, a move above could see prices testing 1361.2.

Trading Ideas:
–Cardamom trading range for the day is 1301-1361.2.

–Cardamom prices ended with losses tracking weakness in spot demand amid profit booking.

–However downside seen limited on expectations of lower arrivals due to poor production caused by prolonged dry weather condition in Kerala.

–India exported 1,150 ton cardamom during Apr-Jun up 25% on year.

–Cardamom prices in spot market gained by 22.10 rupees and settled at 1361.30 rupees.

Courtesy: Kedia Commodities

LEAVE A REPLY

Please enter your comment!
Please enter your name here