Cardamom on MCX settled up by 0.35% at 1469.3 in view of restricted supplies, exporters demand and weather woes in producing centres. Exporters are still in the market hoping good export business due to prevailing high prices in global markets and lower supplies from Guatemala-the other producer. Cardamom prices are likely to trade higher tracking expected fall in arrivals and concern over standing crop. Supply scenario is expected to improve this week. But, the main problem persistently affecting the trade is that only a third of the participants is still active at the auctions and in the open market trading. Harvesting trend is any indication, the total output during the current season might come to around 40 per cent of the previous crop. Exporters continued to stay active. They have bought an estimated 40-50 tonnes of exportable variety capsules last week. Arrivals last week decreased to 286 tonnes from 447 tonnes the week before. The individual auction average moved up to above Rs. 1,200 last week and was vacillating between Rs. 1,153 and Rs. 1,243 a kg. Total arrivals during the season from August 1 up to December 31, were at 10,093 tonnes and sales were at 9,551 tonnes. The individual auction average for the season as on December 31 stood at Rs. 1,068.66 a kg. Technically market is under short covering as market has witnessed drop in open interest by -0.69% to settled at 720 while prices up 5.1 rupee, now Cardamom is getting support at 1455.7 and below same could see a test of 1442.1 level, And resistance is now likely to be seen at 1483.3, a move above could see prices testing 1497.3.

Trading Ideas:

Cardamom trading range for the day is 1442.1-1497.3.

Cardamom prices gained in view of restricted supplies, exporters demand and weather woes in producing centres.

Exporters are still in the market hoping good export business due to prevailing high prices in global markets.

Harvesting trend is any indication, the total output during the current season might come to around 40 per cent of the previous crop.

Cardamom prices in spot market gained by 14.80 rupees and settled at 1442.40 rupees.