Technically MCX Cardamom is under short covering as market has witnessed drop in open interest by -8.06% to settled at 57 while prices up 2.6 rupees.
Now Cardamom is getting support at 949.1 and below same could see a test of 916 level, And resistance is now likely to be seen at 1016.4, a move above could see prices testing 1050.6.
Cardamom on MCX settled up by 0.27% at 982.1 as new season arrivals have been limited affected by the dry weather in the cardamom growing regions of Kerala. Good demand for the domestic market as well as for exports are driving the prices higher.
Anticipation of a comparatively good crop due to favourable weather conditions coupled with a likely decline in the prices has slowed buying.
A liquidity crunch and severe labour shortage are adding to the problem. Exporters bought 100-120 tonnes last week. Total arrivals stood at 749 tonnes last week as against 655 tonnes the previous week.
The auction average for the week dropped to Rs. 826.27 a kg from Rs. 902.31 the previous week. Total arrivals during the current season, as on November 4, were 7,834 tonnes and sales touched 7,659 tonnes.
The individual auction average of the season was Rs. 1,003.02 a kg. The first quarter ended June 2017 saw shipments at 1,220 tonnes worth Rs 134.55 crore, up 10 per cent in volumes and 48 per cent in value compared to the same period the previous year.
Increase in arrivals was accompanied by a price rally with domestic demand rebounding during festival season. Admitting that the price fall has benefitted them, exporters said the demand was robust from Gulf countries.
--Cardamom trading range for the day is 916-1050.6.
--Cardamom gained as new season arrivals have been limited affected by the dry weather in the cardamom growing regions of Kerala.
--A third round of harvest may be possible which could extend the current arrivals till December.
--Cardamom exports have been on the rise from the beginning of the year.
--Cardamom prices in spot market gained by 1.10 rupees and settled at 1007.50 rupees
Courtesy: Kedia Commodities