Cardamom on MCX settled up by 2.5% at 1174.5 amid sharp fall in output during the current season. North Indian dealers were actively covering while the exporters were also showing interest to buy. At Vandanmettu market, estimated market supply was at 68561 kgs, down by 31768 kgs from previous day’s arrivals. Total arrivals today stood at 100.3 tonnes and almost the entire quantity was sold out. Exporters were estimated to have bought around 80 tonnes of exportable grade capsules at Rs. 1,050-1,100. Good colour current bulk was being traded at Rs. 1,050-60. Arrivals at the auctions last week dropped to 565 tonnes from 625 tonnes 635 tonnes the previous week. Small cardamom exports from India are likely to earn as much this fiscal as the last one despite a shortfall in volumes, as shippers are getting good price for the spice. In 2015-16, India had exported a record 5,500 tonnes of small cardamom valued at Rs 450 crore following a bumper crop. The extended dry spell with high temperatures that prevailed from December 2015 to the first fortnight of May 2016 affected the flower setting, thereby delaying the harvest. According to trade sources, dry weather has affected about 10-15 per cent of cardamom plants and an estimated a loss of 20-25 per cent in production in Kerala’s Idukki district, which produces 80 per cent of the small cardamom in the country. Technically market is under fresh buying as market has witnessed gain in open interest by 4.61% to settled at 794 while prices up 28.6 rupee, now Cardamom is getting support at 1153.6 and below same could see a test of
1132.8 level, And resistance is now likely to be seen at 1187.6, a move above could see prices testing 1200.8.

Trading Ideas:

Cardamom trading range for the day is 1132.8-1200.8.

Cardamom prices gained amid sharp fall in output during the current season.

North Indian dealers were actively covering while the exporters were also showing interest to buy.

At Vandanmettu market, estimated market supply was at 68561 kgs, down by 31768 kgs from previous day’s arrivals.

Cardamom prices in spot market gained by 15.40 rupees and settled at 1136.80 rupees.