Cardamom on MCX settled down by -1.52% at 1520.3 on profit booking after prices gained amid falling supplies due to weak output and fag-end of the season. Harvesting across major estates in Kerala has almost completed while upcountry buyers and exporters are active in buying as they see little availability moving ahead. Though the south-west monsoon was declared “normal” last year after two consecutive years of drought, the cardamom growing areas received poor rains. Cardamom farmers say the monsoon was very bad and about 50 per cent deficient. A failed north-east monsoon also added to the crop worry. The farmers say that last year they received just about 10 per cent rains compared to what they used to get normally during the north-east monsoon. The yields are thus likely to take a hit and are expected to be just 30 percent of last years. Prices are expected to remain high as cardamom enters its lean season which is between February and May when the supply comes down. Harvesting trend is any indication, the total output during the current season might come to around 40 percent 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. Technically market is under long liquidation as market has witnessed drop in open interest by -9.69% to settled at 615 while prices down -23.4 rupee, now Cardamom is getting support at 1508.6 and below same could see a test of 1496.8 level, And resistance is now likely to be seen at 1533.6, a move above could see prices testing 1546.8.

Trading Ideas:

# Cardamom trading range for the day is 1496.8-1546.8.

# Cardamom prices dropped on profit booking after prices gained amid falling supplies due to weak output and fag-end of the season.

# Cardamom farmers say the monsoon was very bad and about 50 per cent deficient.

# The farmers say that last year they received just about 10 per cent rains compared to what they used to get normally during the north-east monsoon.

# Cardamom prices in spot market dropped by 19.40 rupees and settled at 1443.60 rupees.