MCX Cardamom market under long liquidation
Commodity Online | September 20 2016
UPDATED 15:40:04 IST

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Cardamom on MCX settled down by -1.71% at 1182.4 amid slide in physical demand for cardamom in the domestic spot market. Adverse weather has hit the cardamom output badly and impact is visible on arrivals. There were almost no rains for nearly 6 months in Kerala and other producing states, which hit the plantations. As a result arrivals have been delayed and have not picked up yet. India exported 1,150 ton cardamom during Apr-Jun up 25% on year. Total arrivals during the season from Aug 1 to Sep 3 were at 2,110 ton and sales were at 1,937 ton. Cardamom output is likely to fall sharply this year due to adverse weather in all the producing areas of south India.

There were almost no rains for nearly 6 months in Kerala, which hit the plantations badly which resulted in fall in output. India exported 1,150 ton cardamom during Apr-Jun up 25% on year. 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. The country exports roughly 15-20 per cent of its total cardamom production, thus, next year exports may be around 3,500-4,000 tonnes. Last year, cardamom exports jumped 35.8 per cent over the previous year to 5,938 tonnes, according to Department of Commerce data.

Technically market is under long liquidation as market has witnessed remain unchanged in open interest by 0% to settled at 965 while prices down -20.6 rupee, now Cardamom is getting support at 1169.6 and below same could see a test of 1156.8 level, And resistance is now likely to be seen at 1192.6, a move above could see prices testing 1202.8.

Trading Ideas:

--Cardamom trading range for the day is 1156.8-1202.8.

--Cardamom prices ended with losses amid slide in physical demand for cardamom in the domestic spot market.

--Adverse weather has hit the cardamom output badly and impact is visible on arrivals.

--Total arrivals during the season from Aug 1 to Sep 3 were at 2,110 ton and sales were at 1,937 ton.

--Cardamom prices in spot market dropped by 5.30 rupees and settled at 1025.80 rupees.

Courtesy: Kedia Commodities