Commodity Trading Tips for Cardamom by Kedia Commodity
Cardamom on MCX settled up 0.65% at 1185.6 taking positive cues from spot market on rising demand. 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. The production and export of cardamom, has been increasing over the past three years. Despite competition from Guatemala, the largest producer of cardamom, there are good days for cardamom sector in the country. India grew just over 20,000 tonnes of cardamom and exported around 4,700 tonnes in 2013-14. However, during 2015-16, 27,300 tonnes of cardamom were produced and over 6,000 tonnes were exported globally. In three years the production and exports have increased by 33.5 per cent and 30 per cent, respectively. 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 -1.37% to settled at 935 while prices up 7.7 rupees, now Cardamom is getting support at 1171.6 and below same could see a test of 1157.5 level, And resistance is now likely to be seen at 1194.3, a move above could see prices testing
Cardamom trading range for the day is 1157.5-1202.9.
Cardamom settled up taking positive cues from spot market on rising demand.
The production and export of cardamom, has been increasing over the past three years.
India exported 3,000 ton cardamom during Apr-Dec down from 3,825 ton a year ago, data from Spices Board showed.
Cardamom prices in spot market dropped by 5.70 rupees and settled at 1228.30 rupees.