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Technically Cardamom market is under fresh buying as market has witnessed gain in open interest by 18.33% to settled at 142 while prices up 12.3 rupees.
Now MCX Cardamom is getting support at 1415.2 and below same could see a test of 1404.1 level, And resistance is now likely to be seen at 1436.2, a move above could see prices testing 1446.1.
Cardamom on MCX settled up by 0.87% at 1426.4 tracking firmness in spot demand despite improvement in supplies. Prices also seen supported due to heavy losses to crop due to recent floods and good export hopes.
In spot markets, festive demand is over but soon buying for marriage season will pickup and that would prop up the prices. The fresh spell of rains in Kerala may have a favourable impact on plantations.
Traders are expecting improvement in supplies as third round of picking is going on. There is a concern about export to UAE due to strict pesticide rules but export demand from other countries is likely to be better 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 Rs 6.09 billion though average per unit prices were down, data from Spices Board showed. 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.
Arrivals of the new crop of cardamom have started at the auction centres in Bodinayakanur in Tamil Nadu 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.
Trading Ideas:
–Cardamom trading range for the day is 1404.1-1446.1.
–Cardamom gained tracking firmness in spot demand despite improvement in supplies.
–Prices also seen supported due to heavy losses to crop due to recent floods and good export hopes.
–In spot markets, festive demand is over but soon buying for marriage season will pickup and that would prop up the prices.
–Cardamom prices in spot market gained by 1.10 rupees and settled at 1328.80 rupees.
Courtesy: Kedia Commodities
Source: Commodityonline.com
