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Selling pressure coupled with rain sentiments has impacted cardamom auctions on Tuesday, registering a price drop of ₹100 per kg on all categories.
According to traders, the market is on a downward trend, forcing major buyers to abstain. There is a selling pressure on higher price realisation, as is evident from the arrivals at today's auction at 103 tonnes in Bodinayakanur. Traders are expecting a declining trend in this entire week.
It is pointed out that the auctions are passing through a skeptical mode due to higher arrivals that had hit the liquidity in the market. The trend on higher arrivals and prices has affected the purchasing capacity. Cardamom transactions are on a cash and carry basis and there is a need for adequate money supply with traders to avail more stock.
Of the total quantity on offer, the combined average price both in morning and evening session was ₹2814.65 per kg.
In the morning session Sugandhagiri Spices Promoters &Traders Pvt Ltd offered 37.8 tonnes of 210 lots, in which 35.2 tonnes realised an average price of ₹2,829.37. The highest price quoted for selected lots was ₹3,156.
In the evening session, SpiceMore Trading Company, Kumily offered 65.8 tonnes of 289 lots in which 60.8 tonnes realised at an average price of ₹2,799.94. The highest price quoted for selected lots was ₹3,115.
According to trade analysts Acumen Capital Markets, the most active cardamom December futures fell 1.85 per cent or ₹53 when last traded at ₹2815.10 per kg on Tuesday.
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