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The cardamom market continued to move up on export buying and domestic buying at last week auctions.
Individual auction average at all the auctions stayed above Rs 825 a kg, except for one auction where it was at Rs 807 last Monday.
Exporters were seen buying and an estimated 30 tonnes of cardamom were bought by them. They are said to be having orders in hand, but at lower rates, and hence they are waiting for the prices to decline, trade sources in Bodinayakannur said.
Upcountry buyers were very active and covering good quantities. A bullish sentiment has emerged in the market given the unfavourable weather conditions prevailing in the growing areas so far this year. Besides, inventories in the upcountry markets are said to be empty. Retailers all over the country are also said to be “buying small quantities”, market sources told Business Line.
Demand has started picking up in North India for the festival season, winter and wedding season, they said.
The positive trend is also attributed to emptying of pipelines in the North Indian markets following the boycott of auctions for over a month recently by the traders in protest against raising of the minimum bidding rates. Revival in demand from upcountry markets was visible in recent days, market sources in Kumily and Bodinayakannur said.
Arrivals high
In the meantime, arrivals last week soared to around 545 tonnes which the trade attributed to release of stocks piled up during the suspension of auctions for over six weeks.
According to market sources, arrivals are expected to be normal as the crop this season is estimated to be 50 per cent of the output last season. It is, in fact, evident from the arrivals and sales so far in the current season, which is nearly half of the arrivals during the same period in the last season. Now, third round of picking is over and the remaining crop would be harvested in two or three round of picking and that might last till February next year.
At the Sunday auction conducted by the KCPMC, total arrivals declined to 85.5 tonnes from 95.5 tonnes the previous Sunday and the entire quantity was sold out. The maximum price was at Rs 1,135 a kg and minimum was at Rs 505 . Auction average price increased to Rs 854.29 from Rs 835 the previous Sunday, P.C. Punnoose, General Manager, CPMC, told Business Line . Good quality material arrived yesterday and hence the bulk fetched around Rs 850 while 8mm bold was sold at Rs 1,100-1,200, he said.
Total arrivals and sales during the current season from Aug 1 were at 4,682 tonnes and 4,464 tonnes respectively. In the corresponding period last season, they were at 8,038 tonnes and 7,817 tonnes, official sources said.
The weighted average price as on Dec 2, 2012 stood at around Rs 760.27 against Rs 572.13 on the same date last year.
Prices of graded varieties (Rs/kg): AGEB 1,010-1,020; AGB 810-820; AGS 775-785; and AGS -1 750-760.
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