With cardamom arrivals continuing to remain robust, there are reports of stock being held back in anticipation of future gains.
Traders raised the suspicion that other than farmers, stockists, speculators, commodity brokers as well as a few traders are holding stock expecting better prices in the lean months of January, February and March. This is one reason for the heavy arrivals on several days. A majority are looking at booking profits, and therefore, enter the market with handsome quantities on comfortable days.
According to traders, the continuous heavy arrivals is a worrying factor, particularly at a time when cardamom prices are ruling high. The market does not have adequate monetary capacity to absorb such heavy stocks. And hence, the market does not show any positive trend on such days.
Meanwhile, the presence of inferior quality capsules have had a say on cardamom auctions in Bodinayakanur on Friday, with prices witnessing stronger demand — by ₹20-30 per kg across grades — compared to the previous day.
Even though the market was strong and steady with a good arrival of 100 tonnes, traders pointed out that the presence of inferior quality capsules have not boosted the average price realisation, which stood at a combined average price of ₹3,830.55 per kg (₹3,875.08).
Basically, dealers catering to the North Indian markets operated along with institutional suppliers. Demand from exporters was subdued.
In the morning session, the auctioneers Cardamom Planters Marketing Cooperative Society offered 75 tonnes of 269 lots, realising an average price of ₹3,853 per kg. The highest price quoted for selected lots was ₹4,172 per kg.
In the evening session, the auctioneers Cardamom Planters Association, Santhanpara, offered 25.3 tonnes of 167 lots in which 22.9 tonnes realised an average price of ₹3,801.64 per kg. The highest price quoted for selected lots was ₹4,223 per kg.
Trade analysts Acumen Capital Markets said that the most active Cardamom February futures fell by 0.45 per cent or ₹17.90 to ₹3,984.90, from ₹4,002.82 on Friday.
[“source=thehindubusinessline”]