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Cardamom futures on MCX witnessed a very volatile trade during the week ending on September 22. In the early part of the week, the most active October futures fell sharply to a three-week-low on the emergence of selling pressure. The widespread rainfall across Kerala, the major cardamom producing State, raised the prospects of a good crop. Besides, subdued demand from upcountry traders as well as exporters because of higher price also had a negative impact on prices. Heavy supplies hitting the auction centres also pressurised prices. The most active October contract futures hit a low of ₹1,135 per kg during the week (the contract’s high in the week was ₹1,212.30 per kg).
In the later part of the week, however, the market recovered on bargain buying from some of the upcountry traders to meet the festival demand. In the futures market, there was short covering that helped price recover. It moved up from the low of ₹1,135 per kg to end the week at ₹1,183.30 per kg.
Outlook For the week ahead, cardamom market is expected to show positive trend on the emergence of festival season demand, especially from upcountry traders. Exports are also likely to pick up in the short term. For the current year, India’s cardamom production is expected to be around 15,000 tonnes.
The writer is Head-Commodity Research, Karvy Comtrade
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