Cardamom Settles Higher On Export Demand.

The Cardamom futures witnessed small recovery on fresh buying on Tuesday. Lower buying at after a huge fall in prices supported the futures to move up.

However, poor demand at domestic as well as export front limited the gains and futures ended the day on marginally positive note.

Outlook

The Cardamom June futures are expected to extend the recovery during the day. Fresh buying on lower levels might support the prices. Bearish fundamentals of reduced demand amid ample supply might add to the bearish trend.

Daily total arrivals at different auctions were declined marginally to 16,314 Kg. on Monday. According to Spices board of India, total arrivals during the current season from Aug 1st week to May 1st week stood at 9,461 tons against 8,975 tons in the same period last year.

Thus, arrivals have risen by 5% during current season which weighing on sentiments. As per trade sources, grower who were earlier holding the stocks are now releasing their stocks in anticipation of further fall in prices.

According to derivative analysis, prices and open interest have declined while volumes have increased. This Indicates that new money is coming into the market, showing aggressive new short selling.

This scenario will prove out a continuation of a downtrend and a bearish trend.

Source : commodityonline.com