Short covering seen in MCX Cardamom

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Technically Cardamom market is under short covering as market has witnessed remain unchanged in by 0% to settled at 241 while prices up 20.1 rupees.

Now MCX Cardamom is getting support at 1400.4 and below same could see a of 1378.7 level, And resistance is now likely to be seen at 1434.4, a move above could see prices testing 1446.7.

Cardamom on MCX settled up 1.43% at 1422.2 because of heavy loses to crop due to recent floods and good export hopes after the steep fall in rupee. Though there is a concern about demand from UAE due to strict pesticide rule, demand from other countries is likely to be robust because of fall in rupee.

Export of cardamom from the country during 2017-18 spurted 48% to 5,680 ton from 3,850 ton a year ago.  Volume wise exports recorded a growth of 45% at 6.09 billion though average per unit prices were down, data from Spices Board showed.

Arrivals of the new crop of cardamom have started at the auction centres in Bodinayakanur in and Vandanmedu in Kerala. Around 25 tn of new arrivals are coming at auctions daily, which is 25-30% of the total arrivals.

Heavy showers for a prolonged period have led to fungal diseases in plantations. As of Monday, plantations spread over 1,337.60 ha in Kerala’s Idukki district had been damaged, according to the state’s farm department. Despite record higher exports in 2017-18, exports figure in 2018-19 may not touch that volume as there are issues regarding pesticide to the stocks exported to Saudi Arabia.

Trading Ideas:
–Cardamom trading range for the day is 1378.7-1446.7.
–Cardamom settled up because of heavy loses to crop due to recent floods and good export hopes after the steep fall in rupee.
–Despite last year’s record exports, exports in the current year are likely to be affected due to strict measures by Saudi Arabia due to pesticide issue.
–Around 25 tn of new arrivals are coming at auctions daily, which is 25-30% of the total arrivals.
–Cardamom prices in spot market gained by 4.40 rupees and settled at 1370.00 rupees.

Courtesy: Kedia Commodities

Source: Commodityonline.com