Cardamom futures are expected to open on lower note on corrections. However, later on prices might resume uptrend on good demand from exporters and up country buyers.
According to trade sources, one more round of picking is remaining for current harvesting season and likely fall in arrivals is expected in coming days.
Total arrivals at spot auction held in Kerala were reported around 95,745 Kg. on Wednesday. Total arrivals at spot auction till January 22nd were reported around 10,410 tonnes 6,910 tonnes arrived during same period last year.
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.
According to derivative analysis, prices have increased while volumes and open interest have declined. It is a good indication that Market is running out of traders willing to open or hold an open long/buy.
Traders are liquidating both loosing short positions & closing winning long positions. A higher probability the market is set to retrace in price lower.
Cardamom MCX Feb-12 support: 636 643 resistance: 656 661 Buy at 647 TP 670 SL 630
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