Marginal Dip Is Possible In Cardamom On Profit Taking 12-Feb-2014


Cardamom futures ended a tad lower on Tuesday lead by profit taking. The MCX March delivery settled the day at Rs 823, down Rs 6.60 or 0.80% from last close. Cardamom may drop further slightly on profit taking and needs to watch weather developments in major belts, if dry weather continues, its likely to support the prices at lower side.

Dry weather in the cardamom belts is aiding upside in the cardamom futures prices. Weather developments in the coming two months needs be watched to estimate further price trends in cardamom. As per the latest spices export data released by the spices board of India, India exported small Cardamom of 1,805 MT valued at Rs. 144.35 crore during the period April to November 2013, jumped 38% and 22% respectively in volume and value of exports. Strong arrivals were keeping cardamom prices sluggish during the year and upside may get capped in medium term. As per the latest weekly news letter released by the spices board, the overall quantity sold in the auction centers in India so far 03rd February 2014 is estimated at 14,222.43 tonnes with average rate of Rs 593.67 a kg, against 7,435.27 tonnes with average rate of Rs 767.73 a kg same period last year. Indian crop is better on favorable weather this year and the harvesting is at end stage. As per the market sources, Crop size of Guatemala is similar to last year.

Cardamom futures off from its high of Rs832-845 level, as some long position liquidation emerged at higher side. Cardamom March delivery settled the day at Rs 823, down Rs 6.60 or 0.80% from last close with the open interest pared 39 positions to 3,706 tonnes, indicating long liquidations. Technically, the counter is likely to find support at Rs 815, Rs 809 and resistance is at Rs 831, Rs 840 level.