Cardamom Extends Downward Trend On Weak Demand

Cardamom extends the downtrend on fall in spot market demand, adequate stocks availability in the physical market following higher arrivals from producing regions. MCX Cardamom October contract ended the last day at Rs976, down Rs14.40 or 1.45% over last close.

The average price in the auction stood at Rs700 a kg while the arrivals and Offtakes were stood at 71.20 tonnes and 64.36 tonnes in today at Mas Enterprises, Vandanmettu.

Cardamom slipped from the July month high Rs1400 a kg on profit taking amid strong arrivals in the local markets. The counter dropped below Rs 1000 kg. The projected shortage in the crop size has not affected the market so far as current requirement is met from the carry overstock from the last year crop and current years harvested crop. The cardamom market will bounce back only when crop season enters in the off-season arrivals or once the current stocks exhausts fully.

MCX Cardamom October delivery failed to sustain above Rs 990 and tested the low Rs 970 in today's trading session. The contract ended the day at Rs976.50, up Rs14.40 or 1.45% over last close. The open interest dipped 14.37% to 3,764 tonnes, indicating long liquidations.