Commodity Trading Tips for Cardamom by Kedia Commodity

Cardamom on MCX settled up by 1.95% at 1462.1 on good buying support amid a squeeze in supplies. The small cardamom markets last week remained nearly steady on matching demand and supply at auctions held in Kerala and Tamil Nadu. The week witnessed good export demand even at the current price levels and that in turn has kept the market by and large steady. Exporters bought an estimated 100-120 tonnes of capsules last week, he said. Arrivals last week slipped to 427 tonnes from 463 tonnes the previous week. The auction average was vacillating between Rs. 1.305 and Rs. 1.350 a kg. Total arrivals during the season from August 1 up to February 18 were at 12,853 tonnes and sales were at 12,252 tonnes. 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. Technically market is under short covering as market has witnessed drop in open interest by -2.8% to settled at 763 while prices up 28 rupees, now Cardamom is getting support at 1442.4 and below same could see a test of 1422.7 level, And resistance is now likely to be seen at 1479.4, a move above could see prices testing 1496.7.

Trading Ideas:

# Cardamom trading range for the day is 1422.7-1496.7.

# Cardamom prices gained on good buying support amid a squeeze in supplies.

# The week witnessed good export demand even at the current price levels and that in turn has kept the market by and large steady.

# Arrivals last week slipped to 427 tonnes from 463 tonnes the previous week.

# Cardamom prices in spot market gained by 6.20 rupees and settled at 1470.40 rupees.