Cardamom on MCX settled down -0.89% at 1543.7 as investors remained on the sidelines amid muted physical demand for cardamom in the domestic spot market. 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. Even now plantations are facing moisture stress which may impact pickings. Total cardamom arrivals across Kerala in last week were around 410 MT against 333 MT arrived during last week, higher by 22.8%. Meanwhile, exports and domestic buying was lower at higher price levels. Farmers did not want to sell fearing delayed receipt of sale proceeds while the buyers were not enthusiastic to buy for want of sufficient funds and that in turn led to the suspension of over 50 per cent of the auctions last week. India’s production is likely to fall by 30-40% in 2016-17 due to unfavourable weather conditions. Prolonged dry weather occurred in the Idukki district, which has severely affected yield of the crop, which was in the flowering stage at that point of time. In many cases, the plants have been partially or fully destroyed due to the dry weather, as many plantations in the region do not have irrigation facilities. Technically market is under long liquidation as market has witnessed drop in open interest by -14.77% to settled at 681 while prices down -13.8 rupee, now Cardamom is getting support at 1528.2 and below same could see a test of 1512.6 level, And resistance is now likely to be seen at 1561.2, a move above could see prices testing 1578.6.

Trading Ideas:

Cardamom trading range for the day is 1512.6-1578.6.

Cardamom prices dropped as investors remained on the sidelines amid muted physical demand for cardamom in the domestic spot market.

Deficient rains have hit the cardamom crop badly in Kerala-the largest producing states.

Total cardamom arrivals across Kerala in last week were around 410 MT against 333 MT arrived during last week, higher by 22.8%.

Cardamom prices in spot market dropped by 3.40 rupees and settled at 1463.00 rupees.