Cardamom on MCX settled up 0.26% at 1135.3 because of tight stocks and good demand for festive and marriage seasons. Though arrivals of cardamom have picked up in the auctions centres but fears of weak output checked the prices to fall. Arrivals have started picking up in the producing centres but are lower than last year due to poor production caused by prolonged dry weather in Kerala, the largest producing state. India exported 1,150 ton cardamom during Apr-Jun up 25% on year. Small cardamom exports from India are likely to earn as much this fiscal as the last one despite a shortfall in volumes, as shippers are getting good price for the spice.
In 2015-16, India had exported a record 5,500 tonnes of small cardamom valued at Rs 450 crore following a bumper crop. This time, however, the production is expected to be nearly half due to a long drought before monsoon. The considerable drop in rainfall during the month of August-September has negatively impacted the cardamom production. As per estimate, there is a drop of above 30 per cent rainfall during the two months in the Cardamom Hill Reserve (CHR) areas.
Export shipments in 2016-17 are expected to drop due to expectations of less availability on higher domestic consumption and higher prices. Domestic consumption is expected to be about 12,000-15,000 tonnes. Technically market is under fresh buying as market has witnessed gain in open interest by 1.01% to settled at 799 while prices up 2.9 rupee, now Cardamom is getting support at 1130.3 and below same could see a test of 1125.3 level, And resistance is now likely to be seen at 1144.1, a move above could see prices testing 1152.9.
--Cardamom trading range for the day is 1125.3-1152.9.
--Cardamom prices gained because of tight stocks and good demand for festive and marriage seasons.
--Arrivals have started picking up in the producing centres but are lower than last year due to poor production.
--India exported 1,150 ton cardamom during Apr-Jun up 25% on year.
--Cardamom prices in spot market gained by 2.10 rupees and settled at 1115.70 rupees.
Courtesy: Kedia Commodities