Cardamom futures continued its weak trend after trading higher at the beginning of the week. The overall outlook for the spices look bearish as the supply is higher.
Daily arrivals in major auction centers in Idukki district are in the range of 100 tonnes per day. Favorable climatic conditions in major growing areas particularly in Idukki districts are likely to further increase the arrivals.
Higher carryover stocks and good production prospects suggest a further downside movement in the prices.
However, short covering may cap the fall in prices in the futures market. Expected rise in demand from the domestic and overseas market due to winter season may also limit the fall.
Cardamom stocks in the MCX accredited warehouse increased to 30.3 tonnes from 28.7 tonnes reported same period last week.
Courtesy: Geojit Comtrade Limited
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