Commodity Trading Tips for Cardamom by Kedia Commodity

Cardamom on MCX settled up by 1.42% at 1506.6 on good buying support amid a squeeze in supplies. Harvesting is nearly complete and hence arrivals are unlikely to pick up. Exporters and north Indian dealers have slowed down because of the higher prices. Exports of small cardamom during April-September 2016 have dropped by 20 per cent in volume and 22 per cent in value realisation from that of the same period the last fiscal. Shipments during the first six months of the current financial year stood at 1,625 tonnes valued at Rs. 139.25 crore against 2,026 tonnes valued at Rs. 179.32 crore in the corresponding period in 2015-16, according to Spices Board sources. Though the south-west monsoon was declared “normal” last year after two consecutive years of drought, the cardamom growing areas received poor rains. Cardamom farmers say the monsoon was very bad and about 50 per cent deficient. A failed north-east monsoon also added to the crop worry. The farmers say that last year they received just about 10 per cent rains compared to what they used to get normally during the north-east monsoon. The yields are thus likely to take a hit and are expected to be just 30 per cent of last year’s. Prices are expected to remain high as cardamom enters its lean season which is between February and May when the supply comes down. Technically market is under short covering as market has witnessed drop in open interest by -0.3% to settled at 654 while prices up 21.1 rupees, now Cardamom is getting support at 1483.7 and below same could see a test of 1460.9 level, And resistance is now likely to be seen at 1521.7, a move above could see prices testing 1536.9.

Trading Ideas:

# Cardamom trading range for the day is 1460.9-1536.9.

# Cardamom prices gained on good buying support amid a squeeze in supplies.

# Harvesting is nearly complete and hence arrivals are unlikely to pick up.

# Exports of small cardamom during April-September 2016 have dropped by 20 per cent in volume and 22 per cent in value realization

# Cardamom prices in spot market gained by 12.100 rupees and settled at 1488.80 rupees.