MUMBAI (Commodity Online): Persisting dry weather in growing regions in India and low availability of high quality cardamom in Guatemala has made the Indian variety the top trading commodity at the start of New Year.
On India's Multi Commodity Exchange (MCX), cardamom for February delivery, on 2nd January opened at Rs 630.50 per kg and it closed at Rs 742.50 on 8th February, showing a rise of around 17%.
Auction prices of cardamom in Idukki district in Kerala conducted by Spices Board have crossed Rs 600 per kg for the first time since October 2011.
The farmers in the growing regions are worried about the present weather conditions. The dry conditions if persist for a longer period with insufficient amount of water, the production may fall pushing prices further higher.
The export demand for the Indian variety is high in the global market as the commodity offered by India is of superior quality than from Guatemala.
The arrivals in the market was around 11,617 tons and the sales accounted for 11,357 tons as of 5th February.
India's production in the current year is expected to rise 30% to 21000 tons.
According to Dharmesh Bhatia, Technical analyst at Kotak Commodities, cardamom is short term bullish and suggests traders to go long on MCX Cardamom at current market price and on dips towards Rs.721 for the target of Rs.827-850 with stop loss closing below Rs.673 level.
On MCX, Cardamom for February delivery traded up 3.38% to Rs 767.60 on 9th February at 15:30 IST.
