Cardamom Settles Lower On Weak Exports.

The Cardamom futures continued the recovery on fresh buying during initial hours on Thursday. Lower buying amid reduced arrivals at spot market supported the futures to move up.

However, poor demand at domestic as well as export front pressurized the prices towards the closing and futures ended the day on negative note.

Outlook

The Cardamom June futures are expected to extend the losses on fresh selling on Friday. Prevailing fundamentals of reduced demand amid ample supply might pressurize the prices during the day.

However, small recovery amid fall in arrivals might limit the sharp fall. Daily total arrivals at different auctions were declined marginally to 13,441 Kg. on Thursday.

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 deriva-tive analysis, prices, volumes and open interest all have declined. This Indicates that investors are making money on sell side and are exiting their positions towards the closing.

This scenario may witness a reversal if there is any sudden change happens in participation (volumes).

Source : commodityonline.com