Commodity Trading Tips for Cardamom by Kedia Commodity

Cardamom on MCX settled up 1.16% at 1479 due to good demand and a squeeze in supplies. 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 Idukki market estimated market supply was at 69303 kgs, higher by 22994 kgs from previous day’s arrivals. At Singtam market , Cardamom Badadana is trading lower at Rs. 738 per kg, lower by 1.6 per cent as compared to previous day. Cardamom Chotadana is offered at Rs. 675 per kg, steady against previous close. Cardamom Badadana at Gangtok market is quoted at Rs. 725 per kg, unchanged as compared to previous close. 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 short covering as market has witnessed remain unchanged in open interest by 0% to settled at 726 while prices up 16.9 rupees, now Cardamom is getting support at 1454.6 and below same could see a test of 1430.3 level, And resistance is now likely to be seen at 1497.6, a move above could see prices testing 1516.3.

Trading Ideas:

# Cardamom trading range for the day is 1430.3-1516.3.

# Cardamom prices ended with gains due to good demand and a squeeze in supplies.

# Supply continued to show a shrinkage following the continued dry spell.

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

# Cardamom prices in spot market gained by 8.70 rupees and settled at 1479.10 rupees.