Daily Review- Small Cardamom
13-Nov-2024 08:52 PM
Small Cardamom- Bullish Period
Daily Review - Small Cardamom: Bullish Outlook
New Delhi – The prices of small cardamom have been on a bullish trajectory over the past fortnight, with further price increases anticipated in the near future. This surge is primarily driven by weak supply at auction centers coupled with rising demand in the spot market.
Key Factors Driving Price Increase:
Weak Supply & Increased Demand: The reduced availability of small cardamom at auction centers, alongside heightened demand in the spot market, has led to a price hike of approximately Rs 200-250 per kg in the past two weeks.
Production Shortfalls in Guatemala: The decline in small cardamom production in Guatemala this year is another contributing factor to the price surge. As Guatemala is a significant producer, the reduced output means there is no expectation of imports from there in the near term, tightening global supply.
Auction Details: In the latest auction at Spice More Trading Company, Kumbhali, 63,805 kg arrived with 62,815 kg being traded. The maximum price reached in the auction was Rs 3,000 per kg, with the average price at Rs 2,716 per kg.
Price Rise in Consumption Centers: Encouraging news from production centers has led to an uptick in prices at consumption centers as well, with prices rising by Rs 40-50 today.
Outlook:
The outlook for small cardamom remains bullish for the short term, as both supply constraints and strong demand are likely to keep prices elevated. The absence of imports from Guatemala further compounds the tightening of supply, ensuring the current price trends continue in the near future.