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MCX Cardamom under fresh selling; Support seen at 1089.2

Commodity Online 2018-08-09 14:03:06

Technically Cardamom market is under fresh selling as market has witnessed gain in open interest by 1.92% to settled at 106 while prices down 3.7 rupees.

Now MCX Cardamom is getting support at 1089.2 and below same could see a test of 1086.1 level, And resistance is now likely to be seen at 1095.2, a move above could see prices testing 1098.1.

Cardamom on MCX settled down by -0.34% at 1092.3 as new crops supplies are likely to increase in the coming days. Rains in the producing centres have delayed the arrivals of new crop supplies but now they may increase.

Adverse weather hit the plants in the main producing areas of Kerala and there are reports that crop over an area of 1,337.60 hectares damaged in the Iddukki district. Stocks with traders in the consuming centres are low which will support the prices but exporters' absence may check any big rise.

India’s monsoon rains, the lifeblood of its economy, should recover in August and September from below-average levels at the start of the season, the weather office said on Friday, supporting farm income and broader economic growth.

The farm sector accounts for about 14 percent of India’s $2 trillion economy and employs more than half of the country’s 1.3 billion people. India received below average rainfall in the first two months of its annual June-September monsoon season, according to India Meteorological Department (IMD) data.

Trading Ideas:
--Cardamom trading range for the day is 1086.1-1098.1.
--Cardamom prices dropped as new crops supplies are likely to increase in the coming days.
--Rains in the producing centres have delayed the arrivals of new crop supplies but now they may increase.
--Adverse weather hit the plants in the main producing areas of Kerala and there are reports that crop over an area of 1,337.60 hectares damaged in the Iddukki district.
--Cardamom prices in spot market gained by 5.00 rupees and settled at 1077.50 rupees.

Courtesy: Kedia Commodities