Cardamom on MCX settled down by -0.54% at 1223.9 on profit booking after prices gained on fears of fall in output. Arrivals at the auctions last week declined to around 500 tonnes from 526 tonnes the previous week. Availability of exportable grade 7-8mm capsules prompted exporters to buy last week. They bought an estimated 20 tonnes at prices ranging between Rs. 1,000 and Rs. 1,050 a kg. Total arrivals during the season were at around 2,610 tonnes and sales were at 2,385 tonnes. Export shipments in 2016-17 are expected to drop due to expectations of less availability on higher domestic consumption and higher prices. Domestic consumption is expected to be about 12,000-15,000 tonnes. The country exports roughly 15-20 per cent of its total cardamom production, thus, next year exports may be around 3,500-4,000 tonnes. Last year, cardamom exports jumped 35.8 per cent over the previous year to 5,938 tonnes, according to Department of Commerce data. The growth was driven by higher production and lower prices. Cardamom prices have been on the rise on expectations of a late harvest and lower production. Normally, the fresh crop starts arriving in the market in July but this time the new arrivals are expected to pick up only after August. Delayed arrivals and lower stocks coupled with good export demand from West Asia should keep cardamom prices firm. It is expected that farmers may hold their high-quality cardamom to be harvested in August and may release at higher prices. Technically market is under long liquidation as market has witnessed drop in open interest by -4% to settled at 1081 while prices down -6.7 rupee, now Cardamom is getting support at 1216 and below same could see a test of 1208 level, And resistance is now likely to be seen at 1235, a move above could see prices testing 1246.

Trading Ideas:

Cardamom trading range for the day is 1208-1246.

Cardamom prices dropped on profit booking after prices gained on fears of fall in output.

Arrivals at the auctions last week declined to around 500 tonnes from 526 tonnes the previous week.

The country exports roughly 15-20 per cent of its total cardamom production, thus, next year exports may be around 3,500-4,000 tonnes.

Cardamom prices in spot market gained by 25.80 rupees and settled at 1130.00 rupees.