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Cardamom on MCX settled down by -0.23% at 925.

Posted on Nov 08, 2017 by kc_admin

Cardamom on MCX settled down by -0.23% at 925.5 as supply outstripped demand at auctions in Kerala and Tamil Nadu. Anticipation of a comparatively good crop due to favourable weather conditions coupled with a likely decline in the prices has slowed buying. A liquidity crunch and severe labour shortage are adding to the problem. Exporters bought 100-120 tonnes last week. Total arrivals stood at 749 tonnes last week as against 655 tonnes the previous week. The auction average for the week dropped to Rs. 826.27 a kg from Rs. 902.31 the previous week. Total arrivals during the current season, as on November 4, were 7,834 tonnes and sales touched 7,659 tonnes. The individual auction average of the season was Rs. 1,003.02 a kg. When the harvest started, growers estimated crop output to remain in the range of 10,000 to 15,000 tonnes. But now they expect output to go beyond 20,000 tonnes. Two years ago, the country reaped a bumper harvest of 30,000 tonnes. Cardamom exports have been on the rise from the beginning of the year. The first quarter ended June 2017 saw shipments at 1,220 tonnes worth Rs 134.55 crore, up 10 per cent in volumes and 48 per cent in value compared to the same period the previous year. Increase in arrivals after September was accompanied by a price rally with domestic demand rebounding during festival season.  Technically market is under long liquidation as market has witnessed drop in open interest by -2.45% to settled at 279 while prices down -2.1 rupees, now Cardamom is getting support at 915 and below same could see a test of 904.6 level, And resistance is now likely to be seen at 932.9, a move above could see prices testing 940.4.

Trading Ideas:

#             Cardamom trading range for the day is 904.6-940.4.

#             Cardamom prices dropped as supply outstripped demand at auctions in Kerala and Tamil Nadu.

#             Anticipation of a comparatively good crop due to favourable weather conditions coupled with a likely decline in the prices has slowed buying.

#             A liquidity crunch and severe labour shortage are adding to the problem, exporters bought 100-120 tonnes last week.

#             Cardamom prices in spot market dropped by 14.10 rupees and settled at 963.80 rupees.