Cardamom on MCX settled up by 1.64% at 1147.4 amid slackened domestic as well as exports demand in the spot market. Further, ample stocks position on higher supplies from producing belts too fuelled the downtrend. However downside seen limited because of hopes of increased buying support amid reports of fall in output. Report of lower output in Guatemala may support the prices in the coming week. There were almost no rains for nearly 6 months in Kerala and other producing states, which hit the plantations. Lack of rains not only hit the output but also delayed the arrivals. 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. In Delhi market, cardamom (Robin) traded higher by Rs 10 to Rs 760-770 per kilogram amid tight stocks. 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. The growth was driven by higher production and lower prices. Technically market is under short covering as market has witnessed drop in open interest by -9.04% to settled at 785 while prices up 18.5 rupee, now Cardamom is getting support at 1112.2 and below same could see a test of 1077.1 level, And resistance is now likely to be seen at 1173.2, a move above could see prices testing 1199.1.

Trading Ideas:

Cardamom trading range for the day is 1077.1-1199.1.

Cardamom prices dropped amid slackened domestic as well as exports demand in the spot market.

However downside seen limited because of hopes of increased buying support amid reports of fall in output.

There were almost no rains for nearly 6 months in Kerala and other producing states, which hit the plantations.

Cardamom prices in spot market dropped by 1.80 rupees and settled at 1117.10 rupees.