Cardamom settled flat paring its gains on profit booking after prices gained on fears of fall in output and hopes of good demand for the coming festive season. 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. Total arrivals today stood at 84.5 tonnes and almost the entire quantity was sold out. The dry spell, prevailing in the growing regions of Idukki district, where 75 per cent of the cardamom is grown, is signalling of a further drop in the crop. Decline in the north-east monsoon which is expected in the coming days would result in severe water shortage in the growing areas. Harvesting is in full swing now in all the estates and according to the trade in Bodinayakannur 75 per cent of the capsules arrived was from the new crop and that was fetching good price while the remaining 25 per cent from the previous crop was fetching comparatively low price. Unlike in the normal season only three round of picking is likely to take place this season as the harvesting has started after a three-month delay. Technically market is under long liquidation as market has witnessed drop in open interest by -1% to settled at 790 while prices down -0.7 rupee, now Cardamom is getting support at 1118.1 and below same could see a test of 1108.6 level, And resistance is now likely to be seen at 1135, a move above could see prices testing 1142.4.

Trading Ideas:

Cardamom trading range for the day is 1108.6-1142.4.

Cardamom settled flat paring its gains on profit booking after prices gained on fears of fall in output and hopes of good demand.

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.

Cardamom prices in spot market dropped by 3.80 rupees and settled at 1131.30 rupees.