Quality arrivals has enabled cardamom prices to maintain its strength in the afternoon auctions on Thursday, even as the morning trade witnessed a weak trend, registering a price drop of Rs 20 per kg.

Though positive upward trend was absent, the active participation of local buyers and exporters in the afternoon auctions altered the course of the market to regain its strength especially with quality arrivals and higher quantity on offer. It was the reduced arrivals at 17.34 tonnes coupled with lower quality was a factor for the weak trend in the morning session, traders said.

The holiday on account of Guru Gobind Singh Jayanti celebrations and the sweeping cold wave conditions in North India has slowed down the market which is evident from the reduced upcountry demand. However, the market is not showing a continuous downward trend and regaining its strength after each price drop.

But traders are keeping their fingers crossed on the liquidity crunch being faced by the market in the recent period on account of higher price realization. This has affected the entire cycle of cardamom sale – right from wholesalers to retailers in the consuming centres, payment to auctioneers in primary trade centres etc.

The total quantity on offer in today’s auction at Bodinayakanur was 91 tonnes. The auctioneers Greenhouse Cardamom offered 17.34 tonnes in the morning session, while the quantity sold was 15.31 tonnes. There were 143 lots and the average price realisation was Rs 3696.14 per kg. Some selected lots received a higher price tag of Rs 4121 per kg.

The offer made by South Indian Green Cardamom Company was 74.57 tonnes, with an average price realisation of Rs 3802.22 per kg. Of total number of lots at 321, the maximum price registered by selected lots was Rs 4514.

Trade analysts Acumen Capital Markets said that the January futures price is showing a bullish trend on the daily chart.

 

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