Cardamom retains flavour



During the week ended June 16, the MCX cardamom futures continued its gains for the third consecutive week, tracking positive cues from the market.

Adding to the positive sentiment was the weak monsoon progress in the first two weeks, especially in the cardamom growing regions of Kerala. However, gains were limited on overall good monsoon forecasts along with expectations of higher output in the upcoming harvesting season.

Cardamom futures surged to ₹1,031.5/kg, up 5.79 per cent over the previous week while the next month August futures contract closed with gains of 3.51 per cent from its previous close.

In the spot market, there was good buying interest ahead of Ramzan. However, prices declined slightly as supplies improved. Supplies from June 12 to June 16 were at 254 tonnes, higher by 10 tonnes over the previous week as average prices were in the range of ₹908/kg to ₹983/kg, down by ₹50/kg over the previous week. Monsoon rain during June 8-14 at Idukki, where 70 per cent of the country’s cardamom is grown, was at 86.3 mm. This is lower by 39 per cent from the normal rainfall of 142.1 mm in the corresponding period while seasonal rainfall from June 1 to June 15 was with a deficit of 37.82 per cent.

Outlook

For the week ahead, cardamom futures are expected to extend their gains tracking positive factors in the market. Though there are expectations of higher crop size in the upcoming harvest season, new arrivals are reported to arrive late by July end. At the spot market, supplies are expected to decrease due to starting of the lean season.

The writer is Head, Commodity Research, Karvy Comtrade

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