Cardamom on MCX settled up 0.51% at 1465.2 as supply continued to show a shrinkage following the continued dry spell. Harvesting is nearly complete and hence arrivals are unlikely to pick up. Exporters and north Indian dealers have slowed down because of the higher prices. Exports of small cardamom during April-September 2016 have dropped by 20 per cent in volume and 22 per cent in value realisation from that of the same period the last fiscal. Shipments during the first six months of the current financial year stood at 1,625 tonnes valued at Rs. 139.25 crore against 2,026 tonnes valued at Rs. 179.32 crore in the corresponding period in 2015-16, according to Spices Board sources. 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. At auction conducted in Bodi by Cardamom Planters Association (CPA) Santhanpara, 18 tonnes of cardamom arrived and of this 13.8 tonnes were traded. Technically market is under fresh buying as market has witnessed gain in open interest by 6.82% to settled at 815 while prices up 7.4 rupees, now Cardamom is getting support at 1454.2 and below same could see a test of 1443.3 level, And resistance is now likely to be seen at 1478, a move above could see prices testing 1490.9.

Trading Ideas:

Cardamom trading range for the day is 1443.3-1490.9.

Cardamom prices gained as supply continued to show a shrinkage following the continued dry spell.

Harvesting is nearly complete and hence arrivals are unlikely to pick up.

Exports of small cardamom during April-September 2016 have dropped by 20 per cent in volume and 22 per cent in value realization.

Cardamom prices in spot market gained by 5.30 rupees and settled at 1452.10 rupees.