Cardamom on MCX settled down -1.71% at 1366.6 on the back of muted domestic as well as exports demand in the spot market. Cardamom prices witnessed a substantial decline last week on suspension of seven auctions out of twelve. Farmers did not want to sell fearing delayed receipt of sale proceeds while the buyers were not enthusiastic to buy for want of sufficient funds and that in turn led to the suspension of over 50 per cent of the auctions last week. As the situation is slowly getting back to normalcy majority of the auctions are expected to be held this week. Growers are happy to hold back their produce as the crop is going to be less than 50 per cent this season following the failure of both the south east monsoon and the North-East monsoon this year. Total arrivals at five auctions stood at 144 tonnes as against 416 tonnes the week before and the sales were at 136 tonnes. Exporters also stayed away from the market as the prices were ruling much above their affordable levels. Total arrivals during the season from August 1 up to November 19, 2016 were at 7,924 tonnes and sales were at 7,462 tonnes. Prolonged dry weather occurred in the Idukki district, which has severely affected yield of the crop, which was in the flowering stage at that point of time. Technically market is under fresh selling as market has witnessed gain in open interest by 8.48% to settled at 486 while prices down -23.8 rupee, now Cardamom is getting support at 1347.3 and below same could see a test of 1328.1 level, And resistance is now likely to be seen at 1399.5, a move above could see prices testing 1432.5.

Trading Ideas:

Cardamom trading range for the day is 1328.1-1432.5.

Cardamom prices dropped on the back of muted domestic as well as exports demand in the spot market.

Cardamom prices witnessed a substantial decline last week on suspension of seven auctions out of twelve.

As the situation is slowly getting back to normalcy majority of the auctions are expected to be held this week.

Cardamom prices in spot market dropped by 12.60 rupees and settled at 1350.00 rupees.