Cardamom on MCX settled up by 2.22% at 1478.6 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. At auction conducted in Bodi by Cardamom Planters Association (CPA) Santhanpara, 18 tonnes of cardamom arrived and of this 13.8 tonnes were traded. The auction average was at Rs. 1,344 a kg, while the maximum price stood at Rs. 1,451 a kg. Arrivals last week dropped to 338 tonnes from 411 tonnes the week before. The last week auction average moved up to Rs. 1,377.27 a kg from Rs. 1,351.71 the previous week and was vacillating between Rs. 1,351 and Rs. 1,389 a kg. Harvesting of the current crop is almost over and hence arrivals are unlikely to show any increase. Arrivals declined to 331 tonnes last week from 338 tonnes the week before. Technically market is under short covering as market has witnessed drop in open interest by -0.79% to settled at 504 while prices up 32.1 rupees, now Cardamom is getting support at 1452.6 and below same could see a test of 1426.6 level, And resistance is now likely to be seen at 1497.3, a move above could see prices testing 1516.

Trading Ideas:

Cardamom trading range for the day is 1426.6-1516.

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

Harvesting of the current crop is almost over and hence arrivals are unlikely to show any increase.

Arrivals declined to 331 tonnes last week from 338 tonnes the week before.

Cardamom prices in spot market gained by 0.40 rupees and settled at 1440.80 rupees.