Commodity Trading Tips for Cardamom by Kedia Commodity

Cardamom on MCX settled down by -0.72% at 1494.4 on profit booking after prices were supported recently due to a squeeze in supplies. Arrivals continued to show a declining trend as the harvesting season was almost over and this phenomenon could be attributed to the current rise in prices. The protracted dry spell with high temperatures at this time of the season in Kerala’s Idukki district, the main cardamom growing region in the country, is responsible for the fall in supply and the consequent upward trend in the prices. Water resources for irrigating the plants have almost dried up. In several estates, where irrigation facilities do not exist, the plants have started to wither. Exporters were covering and bought an estimated 50 tonnes of exportable variety last week. Upcountry buyers were also buying. Whatever material had arrived was being absorbed by the market, market sources said. Even at the Cardamom Planters’ Association auction held in Bodi, the arrivals stood at 5.3 tonnes and almost the entire quantity was sold out. At Singtam market, Cardamom Badadana is trading at Rs. 750 per kg, steady as against previous close. Cardamom Chotadana is offered at Rs. 700 per kg, steady against previous close. Cardamom Badadana at Gangtok market is quoted at Rs. 750 per kg, unchanged as compared to previous close. At Vandanmettu market, sources reported arrivals at 41425 kgs, lower by 21257 kgs from previous day’s arrivals. Technically market is under long liquidation as market has witnessed drop in open interest by -1.63% to settled at 665 while prices down -10.9 rupees, now Cardamom is getting support at 1486.2 and below same could see a test of 1478.1 level, And resistance is now likely to be seen at 1505.2, a move above could see prices testing 1516.1.

Trading Ideas:

# Cardamom trading range for the day is 1478.1-1516.1.

# Cardamom prices dropped on profit booking after prices were supported recently due to a squeeze in supplies.

# Arrivals continued to show a declining trend as the harvesting season was almost over.

# At Vandanmettu market, sources reported arrivals at 41425 kgs, lower by 21257 kgs from previous day’s arrivals.

# Cardamom prices in spot market gained by 4.50 rupees and settled at 1488.70 rupees.