The cardamom futures witnessed good volatility week ended on Jan. 14th. From starting of the week futures traded slightly up on fresh buying at lower levels.
Auction activity started in Kerala which also added to the upside. However, later on prices took decent corrections amid huge arrivals at spot auction. Nonetheless, good demand from exporters and on cues from spot activity futures traded up and ended on positive note.
Outlook
Cardamom futures are projected to open on positive note on follow through buying in coming week. Good demand at export front is likely to support the uptrend.
However, rising arrivals at spot auction might limit huge gains during the week. According to trade sources, crop from Guatemala is expected to hit the market by January end of February onwards.
Factors to watch out
Arrivals Daily auction activity in remained in the range of 67-108 tonnes while prices hovered in the range of Rs. 489-533 per Kg.
According to data released by Spices board, cardamom exports during Apr-Nov, 2011 were up by 444% to 3,100 tons against same period in last year
Total arrivals at spot auction till January 14th were reported around 9,835 tonnes 6,725 tonnes arrived during same period last year
As per Spices Board data, international price of Cardamom in Saudi Arabia market improved a bit to $15.74 per kg during the week ended January 13th 2011; however, it was lower than $36.01 per kg quoted in the same period last year
MCX warehouse stocks of Cardamom as on January 19, 2011 were 17 tonnes
Derivative Analysis
The MCX cardamom February contract prices, volumes and open interest have increased. It is a good indication that Market is attracting larger numbers of traders willing to open positions from the long side and hold them. Traders are more confident that prices will continue to climb in favor of a working long.
Courtesy: Karvy Commtrade Ltd.
