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Traders foresee a positive trend on Tuesday’s auction at Spices Park at Puttady, thanks to unexpected gains in the previous day's trade.
The improvement in prices has ensured active participation of exporters, north Indian as well as speculative buyers. According to traders, the encouraging trend was because of the anticipation of a lower arrival in the coming months in the wake of unfavourable climatic conditions in the growing regions. This was one of the contributing factors for the boom in online and physical sales.
It is expected that the availability of capsules would be low in January, February and March due to the absence of rains in several zones in the growing areas coupled with a breeze in the region. This will expected to reduce the moisture content in the soil, forcing farmers to irrigate. The emerging situation will have an impact on productivity in the coming months.
Normally, cardamom growing regions has been divided into three zones such as A, B and C. The zone A is considered as heart of the growing area, followed by B and C with lower production. The B and C zones are now passing through an unpleasant weather conditions which will have an impact on productivity, traders said.
The total quantity on offer in today’s auctions was 83 tonnes. The auctioneers SpiceMore Trading Company, Kumily offered 53 tonnes for the morning auctions, while the offer made by Sugandhagiri Spices Promoters and Traders in the afternoon trade was 30 tonnes.
Trade analysts Acumen Capital Markets said cardamom January futures moved by 1.16 per cent or Rs35.60 when closed at Rs3095.90 on Monday. Cardamom January futures price is showing bullish trend on daily chart.
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