Cardamom on MCX settled down -0.6% at 1408.8 amid fall in physical demand for cardamom in the domestic spot market. Further, sufficient supplies on higher physical arrivals from the major cardamom producing regions too fuelled the downtrend. At Vandanmettu market, arrivals were reported at 46175 kgs, down by 18753 kgs from previous trading day. 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. At auction conducted in Bodi by Cardamom Planters Association (CPA) Santhanpara, 18 tonnes of cardamom arrived and of this 13.8 tonnes were traded. The auction average was at Rs. 1,344 a kg, while the maximum price stood at Rs. 1,451 a kg. Arrivals last week dropped to 338 tonnes from 411 tonnes the week before. The last week auction average moved up to Rs. 1,377.27 a kg from Rs. 1,351.71 the previous week and was vacillating between Rs. 1,351 and Rs. 1,389 a kg. Technically market is under fresh selling as market has witnessed gain in open interest by 8.73% to settled at 635 while prices down -8.5 rupees, now Cardamom is getting support at 1395.4 and below same could see a test of 1382 level, And resistance is now likely to be seen at 1429.6, a move above could see prices testing 1450.4.

Trading Ideas:

# Cardamom trading range for the day is 1382-1450.4.

# Cardamom prices dropped amid fall in physical demand for cardamom in the domestic spot market.

# Further, sufficient supplies on higher physical arrivals from the major cardamom producing regions too fuelled the downtrend.

# At Vandanmettu market, arrivals were reported at 46175 kgs, down by 18753 kgs from previous trading day.

# Cardamom prices in spot market gained by 4.70 rupees and settled at 1446.70 rupees.