Thursday, May 24, 2012

Cardamom Surges on Lower Production Concerns




MUMBAI (Commodity Online): Cardamom futures rose in MCX on Thursday on short covering by the traders due to firm export demand along with lower production concerns.

In MCX Cardamom June contract is trading at Rs.1331.80 per Kg, higher by 2.35% on 13:00 IST against the previous close. Volume traded of the contract stood at 2670 lots and open interest of the contract is 4245 lots.

Chances of a delayed harvest are also supporting the price uptrend. According to a report from traders, the next crop may be delayed to August, as the dry period before the current spell of summer rains has damaged the crop.

The next crop is projected to decline by more or less 35-40 percent. Furthermore, a probable rise in local and export demand amid low stocks in Guatemala is also likely to support the prices.

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