Cardamom on MCX settled down by -3.37% at 1366.3 on profit booking driven by easing demand in the spot market. Prices in last some sessions rallied on export buying at auctions held in Kerala and Tamil Nadu. Arrivals continued to remain negligible. Last week, around 50 per cent of the arrivals were picked up by exporters and the rest was absorbed by domestic dealers. According to trade sources in Kerala's Idukki district, trading activities in almost all commodities have experienced a 50 per cent decline following the demonetisation drive and that has been reflecting on all the allied and related activities. Exporters were active and they have bought an estimated 120 tonnes last week. This phenomenon has kept the market firmer despite limited activity. At auction in Bodinayakannur by the Cardamom Planters' Association (CPA), 7.1 tonnes arrived and almost the entire quantity was traded. The auction average was at Rs. 1,249.64 a kg. The maximum price stood at Rs. 1,401. Due to the failure of both the South-West and the North-East monsoons, arrivals are likely to shrink further in the coming days. Total arrivals at last week's 11 auctions stood at 333 tonnes. The individual auction average last week moved up to Rs. 1,266.37 a kg from Rs. 1,261.07 a kg the previous week and vacillated between Rs. 1,226 and Rs. 1,329 a kg. Technically market is under long liquidation as market has witnessed drop in open interest by -32.44% to settled at 404 while prices down -47.7 rupee, now Cardamom is getting support at 1344.2 and below same could see a test of 1322.1 level, And resistance is now likely to be seen at 1401.7, a move above could see prices testing 1437.1.

Trading Ideas:

Cardamom trading range for the day is 1322.1-1437.1.

Cardamom prices dropped on profit booking driven by easing demand in the spot market.

Last week, around 50 per cent of the arrivals were picked up by exporters and the rest was absorbed by domestic dealers.

Due to the failure of both the South-West and the North-East monsoons, arrivals are likely to shrink further in the coming days.

Cardamom prices in spot market gained by 2.70 rupees and settled at 1375.00 rupees.