Cardamom on MCX settled up by 1.19% at 1406 on good buying support amid a squeeze in supplies. However, good export demand has kept the market buoyant. Exporters have bought an estimated 120 tonnes. Upcountry buyers have slowed down buying following forecasts of good summer rains. Besides they believe that the growers are holding stocks. Availability of imported cheap Guatemala cardamom in the north Indian markets is also aided fall in demand, market sources said. Severe drought conditions continued to exist in the growing regions. Arrivals last week stood at 390 tonnes as against 452 tonnes the previous week. Last week auction average slipped and was vacillating between Rs. 1,191 and Rs. 1,266 a kg. Total arrivals during the season from August 01 up to March 4, 2017 were at 13,696 tonnes and sales were at 13,061 tonnes. 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. Technically market is under short covering as market has witnessed drop in open interest by -9.75% to settled at 676 while prices up 16.5 rupees, now Cardamom is getting support at 1380.3 and below same could see a test of 1354.6 level, And resistance is now likely to be seen at 1431.4, a move above could see prices testing 1456.8.

Trading Ideas:

Cardamom trading range for the day is 1354.6-1456.8.

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

Availability of imported cheap Guatemala cardamom in the north Indian markets is also aided fall in demand.

Severe drought conditions continued to exist in the growing regions.

Cardamom prices in spot market dropped by 2.60 rupees and settled at 1453.20 rupees.