Cardamom on MCX settled down by -2.05% at 1435.2 tracking weakness in spot demand on profit booking after 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. 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. Technically market is under fresh selling as market has witnessed gain in open interest by 6.87% to settled at 871 while prices down -30 rupees, now Cardamom is getting support at 1416.6 and below same could see a test of 1398 level, And resistance is now likely to be seen at 1464.2, a move above could see prices testing 1493.2.

Trading Ideas:

Cardamom trading range for the day is 1398-1493.2.

Cardamom prices ended with losses tracking weakness in spot demand on profit booking.

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

The total output during the current season might come to around 40 per cent of the previous crop.

Cardamom prices in spot market dropped by 11.70 rupees and settled at 1440.40 rupees.