Technically MCX Cardamom is under fresh buying as market has witnessed gain in open interest by 24.65% to settled at 627 while prices up 38.4 rupees.
Now Cardamom is getting support at 1003.1 and below same could see a test of 975.8 level, And resistance is now likely to be seen at 1044.6, a move above could see prices testing 1058.8.
Cardamom on MCX settled up 3.87% at 1030.3 tracking good buying activities in the market. Further, monsoon so far is good; however is lower than the normal rainfall in cardamom growing regions.
New crop arrivals are expected to be delayed as against earlier expectations early arrival to the market if monsoon does not perform as forecasted before.
Monsoon during second week in Idukki district where 70% of country’s cardamom is grown was at 86.3 mm, lower by 39% from normal rainfall of 142.1 mm in the corresponding period.
The small cardamom prices crossed Rs. 1,000 a kg at the auction at Puttady in Kerala's Idukki after dropping and vacillating between Rs. 820 and 900 for a month.
At the auction conducted by South Indian Green Cardamom Company Ltd, Kochi a total of 35.8 tonnes arrived and the entire quantity traded.
The maximum price stood at Rs. 1,247 and the auction average was at Rs. 1,012.88. Last year, cardamom output was down by 50 per cent at 15,000 tonnes.
Arrivals to the auctions declined by half to about 40 tonnes daily at the fag end of the season. The new harvest season will set in by this month-end. But if rains don’t intensify in Idukki in the coming days, the anticipated good crop will not happen.
--Cardamom trading range for the day is 975.8-1058.8.
--Cardamom prices ended with gains tracking good buying activities in the market.
--Further, monsoon so far is good; however is lower than the normal rainfall in cardamom growing regions.
--New crop arrivals are expected to be delayed as against expectations early arrival to the market if monsoon does not perform as forecasted before.
--Cardamom prices in spot market gained by 5.80 rupees and settled at 1165.60 rupees.
Courtesy: Kedia Commodities