Commodities

Rain affects sentiments in cardamom auction

V. Sajeev Kumar Kochi | Updated on November 29, 2019 Published on November 29, 2019

The recent price variations in cardamom have compelled growers to hold on to their stock KK Mustafah

Rains in the growing regions and predictions of more showers has affected sentiments in the cardamom auction market. This has led to a weak trend in prices in the morning session, registering a drop of Rs30 per kg for all varieties in the auctions at Spices Park in Puttady. However, the market regained its strength in the afternoon trade and recouped the prices with the active participation of exporters.

Though the market witnessed the highest arrivals of 140 tonnes in the season that commenced in July, the prediction of rains has given the hope to buyers of more quality cardamom arrivals in the coming days due to increase in production. This sentiment might have forced buyers to refrain from procurement and abstain from the market; traders said adding that favourable climatic condition would support a vegetative growth for the next crop season.

According to traders, the boost in export demand was due to the non availability of Guatemalan cardamom in the overseas markets. This has boosted up the demand for Indian varieties and it expected to continue till December when the new crop from Guatemala hit the market next year.

Of the 140.9 tonnes on offer, the combined average price was Rs 2889.35 per kg. In the morning session conducted by the auctioneers Header Systems, the quantity offered was 74.58 tonnes and realized an average price of Rs  2877.54 per kg. The highest price quoted for selected lots were Rs 3158 per kg.

Mas Enterprises Ltd in the afternoon trade offered 66.03 tonnes of 303 lots in which 65.8 tonnes realized an average price of Rs 2901 per kg. The highest bid for selected lots was Rs 3268.

Trade analysts Acumen Capital Markets Ltd said that the most active cardamom December futures gained Rs1.3 per cent or Rs 37.10 when last traded at Rs 2890 per kg on Friday.

 

Published on November 29, 2019
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