Cardamom on MCX settled down by -0.89% at 1555.4 on profit booking after prices gained amid good export from exporters in view of hopes of higher export contracts. Exporters were active in the auction centres and where making heavy purchases. During the last weeks reporters have reportedly bought over 300 ton cardamom. Deficient rains have hit the cardamom crop badly in Kerala-the largest producing states. Harvesting is almost over and hence the supply is unlikely to increase in the coming days. Buyers were active and were covering apprehending short supplies in the coming weeks. Exporters were also covering and they have bought and estimated 60-70 tonnes of exportable variety capsules last week. Total arrivals during the season from August 1 up to January 13 were at 10,897 tonnes and sales were at 10,330 tonnes. The individual auction average for the season as on January 13 stood at Rs. 1,092.50 a kg. 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. Technically market is under long liquidation as market has witnessed drop in open interest by -0.72% to settled at 825 while prices down -14 rupee, now Cardamom is getting support at 1543.4 and below same could see a test of 1531.3 level, And resistance is now likely to be seen at 1568.3, a move above could see prices testing 1581.1.

Trading Ideas:

Cardamom trading range for the day is 1531.3-1581.1.

Cardamom dropped on profit booking after prices gained amid good export from exporters in view of hopes of higher export contracts.

Harvesting is almost over and hence the supply is unlikely to increase in the coming days.

Total arrivals during the season from August 1 up to January 13 were at 10,897 tonnes and sales were at 10,330 tonnes.

Cardamom prices in spot market dropped by 13.70 rupees and settled at 1473.30 rupees.