April 20, 2012.
Cardamom prices are expected to continue the correction during the day on back of exporter resistance in bulk buying. Despite of fall in arrivals quality is also becoming poor which is weighing on prices.
However, unfavourable weather conditions in major growing regions are creating threat to next season crop, which might support the prices to resume uptrend in near term.
Total daily arrivals at spot auction held in Kerala were around 42,307 Kgs. on Thursday. According to traders’ estimates if weather condition remains unfavourable then it might result in 5-10% lower production in coming season.
Total arrivals during this season, from August 1 were 16,041 tonnes and sales 15,535 tonnes, against 8,732 tonnes of arrivals and 8,511 tonnes of sales in the same period last year
According to derivative analysis, prices and volumes have declined further while open interest has increased. This indicates that participation has declined. It is a good indication that a small rally against downtrend will develop creating a sell point for downtrend.
Cardamom MCX May-12 support:1156 1170 resistance:1202 1217 Sell at 1205-10 TP 1166 SL 1240
Courtesy:Karvy Comtrade Ltd.
No comments:
Post a Comment