Cardamom auction market in Bodinayakanur is likely to witness a seller predominance, after a comfortable arrival of 65 tonnes in the two trading sessions on Wednesday.
According to traders, a good arrival is quite unnatural in the auctions especially during the lean month period and this would pave the way for a seller’s domination in the market. With more arrivals, it can be assumed that planters who are holding the stock are trying to liquidate it on an early basis which clearly makes the market a seller centric.
A selling pressure would further affect the market especially at a time when the prices are showing some instability in the last couple of weeks, traders said.
Exporters are also likely to enter at these declining prices, traders said, adding that cloudy weather in the growing regions may affect the sentiments. Summer shower would result in for vegetative growth in plantations and give more yields. This would be expected to drag down the prices further.
In the morning auctions, the auctioneers Vandanmedu Green Gold Cardamom Producer Company offered 25 tonnes, while the offer made by Idukki Dist Traditional Cardamom Producer Company was 40 tonnes.
Trade analysts Acumen Capital Markets said that the March futures fell by 3.51 per cent or Rs 98 to Rs 2687.60 when closed on Tuesday. The March futures prices are showing some weakness on the daily chart.
Published on March 04, 2020
Source: The Economic Times
Kochi: Cardamom is heading for a second consecutive bad year in exports amid escalating price and the absence of Saudi Arabia as a buyer.
A surge in prices after a two month gap has put an end to a revival in shipments. Average cardamom prices have risen by about 50 per cent in the past couple of weeks to reach Rs 3,600 per kg. “No export is happening at the current level of prices,’’ said Anjo Jose, executive director of Mas Enterprises, an exporter.
Since imposing a total ban on commodities having pesticide residues last year, Saudi Arabia, a top importer for the last so many years, stopped buying Indian cardamom, forcing Indian exporters to seek orders from other countries. “In the absence of Saudi Arabia, shipments were going to the UAE, Kuwait and Bahrain,’’ said Jose. But the volumes were far less.
The crop this year suffered from drought and delayed rains. “The production may be just about the same as last year. The daily arrivals which used to average 30 to 50 tonnes have started falling this week ,’’ said PC Mathew, secretary of Cardamom Growers Association. Excess rains last year played havoc with the production which saw a 37 per cent drop to about 13,000 tonnes.
Delay in harvest and severe shortage of the spice led to average prices spiralling to a record Rs 4,700 per kg in August with the premium quality peaking to a historic Rs 7,000 per kg. But an increase in arrivals after the harvest cooled down prices which had reached Rs 2,400 per kg by October.
Thinning arrivals and the internal demand are keeping the prices high as exports have started dropping. “Growers could be holding stock in anticipation of better prices in the coming months,’’ said Mathew. Many are expecting prices to touch Rs 5,000 per kg, he said.
Source: The Economic Times
There was a drought that delayed the start of the rainy season 3 months. Instead of starting to rain in May as it should it didn’t begin until August. The cardamom plantations blossom during the rainy season, and the harvest begins 3.5 to 4 months after blossoming. So we can expect the crop season to start late and if it does, the quanties produced should be less than normal for the months of September, October and November.
The producers estimation of production didn’t come out yet. As soon as we have an estimate by the cardamom producers association we will let you know.
Less arrivals to Indian Auction centers during end of august around 100 MT daily
Guatemala Will Start Harvesting third week of September and Some of farmer saying “the first of pick will start after 15 days week and we are looking to receive very good quality and volume “
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