Cardamom futures are expected to ease further on technical cues amid slack demand and good arrivals. Cardamom tumbled for second day on short selling triggered by weak demand. MCX Cardamom February contract ended the day at Rs 981.30, down Rs 29.50 or 2.92% from last close.
Besides, weak overseas demand and availability of stocks from last year crop, the reports of gutka ban by the Odisha government trigged selling at higher side. Cardamom may recover in long term, after further correction in the prices in the coming days. India's crop is projected lower over last year and short fall in the local arrivals is expected in mid December -January period. Local crop is likely to drop by 20-25% from the last year's crop due to bad weather in the major belts. Cardamom is expected to bounce back in medium term, when arrivals slumps in auctions and on pick up in export orders. Guatemala's crop with carryover stocks estimated at around 34 thousand tonnes and some infestation will affect mainly the quality of the Guatemala cardamom this season. Guatemala produced a record of 10,000 tons of cardamom in the month of October 2012. Never before in the history of cardamom, had Guatemala produced so much cardamom in one month. This is 40 % of the total production of Guatemala three years back. Guatemala cardamom harvesting runs through October till June next year.
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