Cardamom on MCX settled down by -2.22% at 1402.5 as stockists are on the fence due to tight money market though stock position is tight. However, warmer weather in the all the producing centres of south India may check price fall. Poor South West and North East monsoon is likely to impact adversely on the production of cardamom for the coming season as well. Cardamom prices are likely to trade range bound to firm for the coming couple of weeks, the report added. Harvesting of cardamom is over and arrivals are likely to decline in the coming days. According traders estimates, cardamom production for the current year is around 18,000 ton down from 28,000 tons a year ago showing a fall of 35.7% on year. In Delhi spot market prices of cardamom (Robin quality) fell to Rs 1,300-1,325 per kg on accumulation of stocks around 8,000 bags of 50 kg each. India exported 1,625 ton cardamom during Apr-Sept versus 2,026 ton a year ago. Supply scenario is expected to improve this week. But, the main problem persistently affecting the trade is that only a third of the participants is still active at the auctions and in the open market trading. Harvesting trend is any indication, the total output during the current season might come to around 40 per cent of the previous crop. Technically market is under long liquidation as market has witnessed drop in open interest by -6.44% to settled at 654 while prices down -31.8 rupees, now Cardamom is getting support at 1388.9 and below same could see a test of 1375.3 level, And resistance is now likely to be seen at 1425.3, a move above could see prices testing 1448.1.

Trading Ideas:

Cardamom trading range for the day is 1375.3-1448.1.

Cardamom prices dropped as stockists are on the fence due to tight money market though stock position is tight.

However, warmer weather in the all the producing centres of south India may check price fall.

Poor South West and North East monsoon is likely to impact adversely on the production of cardamom for the coming season as well.

Cardamom prices in spot market dropped by 4.30 rupees and settled at 1462.70 rupees.