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Even a bright sunny day at Bodinayakanur did not help cardamom auctions to maintain a positive momentum, with the prices edging lower on Wednesday.
The market, according to traders, continue to remain unsteady and there was a price drop of ₹20 per kg in all varieties. Despite highest arrivals of 80 tonnes in a single session, buyers were hesitant to enter. There was an active participation, but a strong buying was absent.
According to traders, heavy arrivals that too in a downward price trend has created a panic situation. Fluctuations in the market, which is passing through a sceptical mode, also forced growers to hold on their stock. A control on heavy arrivals is expected to boost the market, traders said adding that they are hoping for a favourable situation by next week.
It is also pointed out that more arrivals and higher price realizations indirectly affected the purchasing capacity and ability of buyers to pump in more money for procurement. A consistent higher arrivals hit the liquidity, which is a major reason for a price drop in the last couple of days.
The total quantity on offer today was 103.7 tonnes and the combined average price was ₹2787.20 per kg (₹2814.65).
In the morning session, the auctioneers GreenHouse Cardamom, Puliyanmala offered 17.4 tonnes of 138 lots in which 14.5 tonnes realised an average price of ₹2,758.42 per kg. The highest price quoted for selected lot was ₹3,086 per kg.
South Indian Green Cardamom Company offered 80.9 tonnes of 329 lots in the afternoon trade in which 77.7 tonnes realised an average price of ₹2,815.98 per kg. The highest price quoted for selected lots was ₹3,130 per kg.
Trade analysts Acumen Capital Markets said that the most active cardamom December futures rose 3 per cent or ₹85.60 when last traded at ₹2,920 (₹2834.40) on Wednesday.
e.o.m.
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