Last Updated : 10 October 2012 at 09:50 IST
IDUKKI (Commodity Online): India cardamom prices appeared to be bullish in spot markets and bearish in futures on Tuesday.
Spot cardamom at Idukki's Nedungandom witnessed sales at the rate of 800/kg for high quality variety and Rs.750/Kg for average quality variety.
The overall trend appears to be bullish with no rains in the growing area. While there has been no news on export demand, festive season sales—Deepavali demand-- has picked up.
“Of particular mention should be the enquiry from Kolkata.” said a trader.
On Monday, Nedungandam witnessed cardamom sales at the rate of Rs.800/Kg in local open markets. Overall trend appeared to be bullish.
Tuesday futures
MCX Cardamom November contract opened at Rs.935, touched a high of Rs.960 and closed at Rs.925.90 before succumbing to a low of Rs.920.
“Cardamom traded in negative territory today and on MCX, November contract made an intraday low of Rs.920. More selling pressure may arise in coming sessions considering global production scenario, while some export orders are expected in upcoming festive season. Good support expected at Rs.920 and resistances at Rs.945 and Rs.980” our in-house analysts said.
India trends
Meanwhile, stalemate continues in cardamom trading areas in Idukki for the second week as the auctions remain suspended. Growers and traders are looking forward to judicial assistance to curtail the stalled situation. As per unconfirmed media reports, 90% growers are referred to be happy with a minimum bidding rate of Re 1 as recommended by the Spices Board constituted Empowered Committee.
While reports suggest that growers have approached the Kerala High Court, traders are approaching the Madras High Court to clear the air.
Global trends
Also, new crop season has started in Guatemala and a bumper cardamom crop is expected there.
Global trends
Also, new crop season has started in Guatemala and a bumper cardamom crop is expected there.
Total quantity to be produced is expected to reach 32 to 33 thousand tons, plus a carryover stock of at least 1,000 tons . Last season, Guatemala exported 29,000 tons of cardamom and around 1,000 tons were left in Guatemala in the hands of speculators.
If this carry over stock is added to Guatemalan production for this season, we can expect around 33 to 34 thousand tons from Guatemala this season.
Some areas in cultivation have been infested since a couple of years back by Thrips. A small insect that causes malformations on the cardamom pod.
Fortunately until today most of the cardamom producing areas are free from the infestation. In any case one can expect a damage in between 7 to 10 percent of the crop, compared to 3 to 5 percent last season. This infestation will affect mainly the quality of the Guatemalan cardamom this season.
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