Technically MCX Cardamom is under fresh buying as market has witnessed gain in open interest by 0.91% to settled at 333 while prices up 17 rupees.
Now Cardamom is getting support at 1261.1 and below same could see a test of 1247.1 level, And resistance is now likely to be seen at 1291, a move above could see prices testing 1306.9.
Cardamom on MCX settled up by 1.35% at 1275.2 on lower supply amid strong demand. Prices of cardamom were up on lower supply in the physical market while the production is also expected to decline.
There is supply concern in the market due to lower carryover stocks. Prices of cardamom were also high on strong demand in the domestic as well as international market.
Demand for cardamom in the domestic market is robust on account of festive season while the export demand is expected to increase which may keep prices supportive.
Consequently the market remained firm at the auction held in Bodinayakannur in Tamil Nadu. At the auction conducted by the Cardamom Planters' Association (CPA) 19 tonnes of cardamom arrived and almost the entire volume traded.
The auction average rose to Rs. 1,137.88 a kg from its previous average of Rs. 1,039.25 a kg. Last week at all the auctions the individual auction average remained above Rs. 1,100 a kg and vacillated between Rs. 1,108 and Rs. 1,162 a kg.
The weekly auction average was at Rs. 1,142.38 a kg. Empty pipe lines in the consuming markets coupled with the supply not improving to the normal supply level at this point of time of harvesting has led to active coverage by upcountry buyers.
Besides the exporters were also buying and they have bought an estimated 70 tonnes last week.
--Cardamom trading range for the day is 1247.1-1306.9.
--Cardamom prices ended with gains on lower supply amid strong demand.
--Demand for cardamom in the domestic market is robust on account of festive season while the export demand is expected to increase.
--During the week nine auctions were held and the total arrivals stood at 479 tonnes and the sales were at 474 tonnes.
--Cardamom prices in spot market gained by 19.90 rupees and settled at 1248.40 rupees.
Courtesy: Kedia Commodities