Resistance seen at 1179.2 for MCX Cardamom
Commodity Online | September 21 2016
UPDATED 15:03:31 IST

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Cardamom on MCX settled down by -2.09% at 1157.7 on continued profit booking amid slide in physical demand for cardamom in the domestic spot market. Further, sufficient supplies amid higher physical arrivals from the major cardamom producing regions too fuelled the downtrend. However downside seen limited on strong demand amid squeezed supply at auctions held in Kerala and Tamil Nadu. At the auction in Bodi conducted by Cardamom Planters’ Association, Santhanpara 43 tonnes arrived and of this 37 tonnes were traded. The maximum price stood at Rs. 1,258 a kg. The auction average was at Rs. 967.37. Arrivals at the auctions last week fell to 239 tonnes from around 500 tonnes the previous week.

Harvesting has begun in almost all estates, growers said. Availability of exportable grade 7-8 mm capsules has picked up but the upsurge in its prices to Rs. 1,050-1,100 a kg is said to have prompted exporters to slow down buying. The individual auction average has shot up last week and was vacillating between Rs. 990 and Rs. 1,030 a kg against Rs. 860 and Rs. 950 the week before. 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. Technically market is under long liquidation as market has witnessed drop in open interest by -3.63% to settled at 930 while prices down -24.7 rupee, now Cardamom is getting support at 1144.3 and below same could see a test of 1131 level, and resistance is now likely to be seen at 1179.2, a move above could see prices testing 1200.8.

Trading Ideas:

--Cardamom trading range for the day is 1131-1200.8.

--Cardamom prices dropped on continued profit booking amid slide in physical demand for cardamom in the domestic spot market.

--However downside seen limited on strong demand amid squeezed supply at auctions held in Kerala and Tamil Nadu.

--At the auction in Bodi conducted by Cardamom Planters’ Association, Santhanpara 43 tonnes arrived and of this 37 tonnes were traded.

--Cardamom prices in spot market dropped by 2.10 rupees and settled at 1132.30 rupees.

Courtesy: Kedia Commodities

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