Cardamom Prices Dropped On Profit

 
Cardamom prices dropped on profit booking after gaining following heavy rainfall in Idukki district of Kerala in the last week of May. Heavy rain may affect production of cardamom crop, which is ready to harvest, in the second half of June. The crop is expected to be higher this season. Earlier in the year, cardamom growing tracts in Idukki district received good summer rain.

Prices started to drop as favourable weather conditions increased the chances of a bumper cardamom crop for the 2017-18 season. Cardamom prices fell by about 20% in May alone as growers and traders were trying to liquidate stocks before the start of the next season which was expected to set in a month earlier in June because of good summer showers. Cardamom arrivals for auction increased by 26.7% on a month-on-month basis to 1836 tonnes in May.

The average auction prices of small cardamom increased to Rs 908 per kg during the week compared to Rs 866 per kg in the previous week. Arrivals slowed down to 202 tonnes against 359 tonnes last week. Cardamom exports fell by about 24.6% year-on-year during 2016-17 as prices were higher throughout the last season. In the first eleven months (April-February) of 2016-17, about 4,565 tonnes of cardamom was exported compared to 6,051 tonnes during the same period in 2015-16.

Imports went up by about 9% to 4,432 tonnes during the timeframe in 2016-17. Technically market is under fresh selling as market has witnessed gain in open interest by 2.08% to settled at 344 while prices down -5.9 rupees, now Cardamom is getting support at 965.4 and below same could see a test of 955.7 level, And resistance is now likely to be seen at 989.9, a move above could see prices testing 1004.7.
 
 
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