Technically MCX Cardamom is under fresh buying as market has witnessed gain in open interest by 7% to settled at 321 while prices up 19.2 rupees.
Now Cardamom is getting support at 1093 and below same could see a test of 1076.6 level, And resistance is now likely to be seen at 1122.8, a move above could see prices testing 1136.2.
Cardamom on MCX settled up by 1.76% at 1109.4 amid lower than expected output due to weak rains in major producing areas of Kerala and Tamil Nadu. Rainfall in Kerala stood 32% below normal and in Karnataka 26% below normal, IMD data showed.
Arrivals are below expectation and whatever quantity is coming to market is absorbed. Apart from domestic, export demand is also good as exporters have good orders with them. Second round of picking activities has commenced but supplies are lower.
Carryover stocks from last season are reported to be very low at the production centers amid good domestic and export demand. India exported 3,850 ton cardamom during 2016-17 down 30% on year due to high prices.
India exported 5,550 ton cardamom a year ago. The maximum price stood at Rs. 1,255 a kg. Arrivals last week rose to 384 tonnes from 11 auctions last week from 252 tonnes from 9 auctions the previous week.
The weekly auction average soared to Rs. 1,011 .30 a kg from Rs. 935.65 a kg the week before last. Individual auction average was vacillating between Rs. 991 and Rs. 1,069 a kg.
Total arrivals during the current season up to July 22, 2017 were at 19,919 tonnes and the sales were at 18,972 tonnes.
--Cardamom trading range for the day is 1076.6-1136.2.
--Cardamom gained amid lower than expected output due to weak rains in major producing areas of Kerala and Tamil Nadu.
--Arrivals are below expectation and whatever quantity is coming to market is absorbed.
--Rainfall in Kerala stood 32% below normal and in Karnataka 26% below normal, IMD data showed.
--Cardamom prices in spot market gained by 2.90 rupees and settled at 1190.40 rupees.
Courtesy: Kedia Commodities