Commodities

Declining price trend impacting cardamom trade negatively

V Sajeev Kumar Kochi | Updated on February 25, 2020 Published on February 25, 2020

Despite showing a declining price trend and improved arrivals, cardamom traders foresee a steady market in the auctions at Bodinayakanur on Tuesday.

The declining trend has created a panic in the market, forcing farmers to sell their stock. This, in turn, has enhanced arrivals in the market, creating a negative impact on the industry, especially on prices.

Traders cited the reasons for the downward price trend to more availability of stocks in consuming centres, high-priced inventory which is hindering the trade to liquidate their stocks . All these have made a slow process in sales. The availability of carry overstock in primary centres also prompts upcountry buyers not to procure the commodity from terminal markets.

Any rise in prices is likely to depend on the summer rains. There is a probability that the delay in a summer shower and the intensity of summer will definitely have a positive impact on prices, traders said.

The total quantity offered today’s auction was 52 tonnes. In the morning session, Cardamom Growers Federation offered seven tonnes, while the offer made by KCPMC in the afternoon trading session was 36 tonnes.

Cardamom prices have started showing a declining trend in the last one week

According to trade analysts Acumen Capital Markets, the March futures fell by 3.46 per cent or ₹106.5 to ₹ 2968.30 when closed on Monday. The March futures prices are showing some weakness on the daily chart.

Published on February 25, 2020
This article is closed for comments.
Please Email the Editor