Cardamom on MCX settled up by 3.27% at 1364.7 because of fall in output and tight stocks amid good demand from exporters and stockists. There are fears of a fall of 30-40% in cardamom output during 2016-17 on year. Present dry weather in the main producing centres may limit the number of picking impacting the output. Arrivals are likely to decline from November due to dry weather. India exported 1,150 ton cardamom during Apr-Jun up 25% on year. Upsurge continued in the small cardamom markets on good demand resultant from the apprehensions about a possible shortage of the aromatic spice this season following a forecast of sharp decline in output. Upcountry dealers were actively covering while the exporters have slowed down following rise in the prices, trade sources said. Exporters have bought somewhere between 60 and 80 tonnes. Good colour current bulk was being traded at Rs. 1,150 a kg. Arrivals at the auctions last week decreased to 705 tonnes from 745 tonnes the previous week. Total arrivals during the season till October 28 were at 6,782 tonnes and sales were at 6,396 tonnes. At Kochi market, sources reported arrivals at 68613 kgs, up by 24925 kgs as compared to previous day. Technically market is under fresh buying as market has witnessed gain in open interest by 9.88% to settled at 901 while prices up 43.2 rupee, now Cardamom is getting support at 1336.2 and below same could see a test of 1307.6 level, And resistance is now likely to be seen at 1382.2, a move above could see prices testing 1399.6.

Trading Ideas:

Cardamom trading range for the day is 1307.6-1399.6.

Cardamom prices gained because of fall in output and tight stocks amid good demand from exporters and stockists.

Present dry weather in the main producing centres may limit the number of picking impacting the output.

At Kochi market, sources reported arrivals at 68613 kgs, up by 24925 kgs as compared to previous day.

Cardamom prices in spot market gained by 20.40 rupees and settled at 1216.50 rupees.