Cardamom February prices extended uptrend for 3rd consecutive day on Tuesday. Spot market activity remained positive on rising demand at domestic and export front.
Therefore, on cues from spot activity futures also ended in green.
Outlook
Cardamom futures prices are expected to continue the positive trend on strong domestic and export demand.
However, during the day prices might take small corrections on profit booking, which might create further buying at lower levels. Exporters are buying in good amount as they are expecting arrivals season is might end soon.
Total daily arrivals at spot auction held in Kerala were reported around 85,297 Kg. on Tuesday
Total arrivals at spot auction till January 22nd were reported around 10,410 tonnes 6,910 tonnes arrived during same period last year
In current arrival season, despite of increased demand higher supply outweighed demand; but now as arrival season is coming to an end, supply-demand is becoming balanced supporting cardamom prices to trade up
According to derivative analysis, prices and volumes have increased while open interest has declined. It is a good indication that market has a lot of traders initiating from both sides but larger traders are liquidating into the higher prices. The market may be vulnerable to large price swings as shorter time frame traders attempt to trade from both sides of the market but liquidating before end of day
Courtesy: Karvy Commtrade Ltd.
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