Huge arrivals at the weekend pulled down cardamom prices at the Sunday auction held in Kerala.

However, the market remained steady on Monday at Sunday's levels as exporters were actively covering, trade sources in Bodinayakannur told Business Line .

They said 8 mm bold good colour was being sold at Rs 1,100-1,150 a kg today.

The individual auction average which was hovering around Rs 750 a kg at the auctions held in Kerala and Tamil Nadu during most of the days last week dropped to Rs 690 a kg on Sunday as arrivals surged to 76.5 tonnes even in this lean season, Kumily sources said.

Because of the favourable weather conditions prevailing, the first round of picking has begun and about 40 per cent of the arrivals Sunday were of the new crop. This has also changed the market sentiment.

However, good export buying estimated at around 80-100 tonnes last week kept the prices at the current levels, they claimed.

Upcountry buyers were also covering but in small quantities, Mr P.C. Punnoose, General Manager, CPMC, told Business Line .

Change in the market sentiment coupled with heavy arrivals pushed the prices down on Sunday, he said adding “however, export demand has been holding the market from a sharp decline”.

Arrivals at the Sunday auction stood at 76.5 tonnes and 968.50 a kg was the maximum price fetched. The auction average fell to Rs 690 a kg from Rs 718.21 a kg the previous Sunday.

Arrivals, contrary to the usual trend at this time of the year, have been on the rise and last week stood at around 370 tonnes as against 357.5 tonnes in the week prior to that.

The heavy arrivals have led to a decline in prices in recent weeks this year, sources said.

Total arrivals during the current season from August 1 to July 3, 2011 stood at 11,901 tonnes. Of this 11,603 tonnes were sold.

Arrivals and sales in the same period of the previous season were 9,826 tonnes and 9,612 tonnes respectively.

The weighted average price as on July 3 was at around Rs 1,010/kg, as against about Rs 868/kg same day last year.

Exporters are said to be holding orders in hand and hence are expected to buy good quantity to meet their overseas Ramzan requirement, a major dealer in Bodi told Business Line on Monday.

Prices in Kumily for graded varieties Monday per kg were: AGEB Rs 900-950; AGB Rs 750-770; AGS Rs 695-725 and AGS 1: Rs 670-690.

Prices in the open market at Bodinayakannur in rupees per kg were: AGEB (7mm) 850-900; AGB (6mm) 700-725 AGS (5mm-6mm) 680-700 and AGS 1: 650-660.

Good bulk was fetching Rs 700-750 a kg.

The growing areas are receiving good rains with occasional sun shine and overall weather conditions have been favourable so far and hence the next crop is likely to be good, growers in Kumily said.

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