CARDAMOM PLUMMETS, EXPECTING RECOVERY FROM LOWER LEVELS
Date: 30/3/2012
Cardamom futures slumped by more than 1% today due to strong arrivals in major trading station due to steady production in the last year. Traders are still expecting some strength at lower levels.
As per market sources , total arrivals of around 14,829 tonnes of cardamom have been reported at auction centres against 8,174 tonnes that were reported last year in the same year . This was mainly due to strong production in the last year. This has prompted strong stockiest selling at higher levels.
However, traders are expecting that paucity of rainfall in the major cardamom growing areas such as Idukki and Kumali of Kerala might impact the cardamom plant growth severely in the current year. Traders are expecting that the total production of cardamom is likely to decline by 50-75% in the current year. This might incite the strong demand of stockiest and exporters at lower levels.
The MCX April Cardamom futures plunged by almost Rs 14 per kg today to trade at Rs 1165 per kg . Traders are expecting some bargain buying at around Rs 1120-1140 per kg while resistances are likely at Rs 1250-1270 per kg.
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