MCX Aluminium may trade between 140.2-142 levels
MCX Nickel under long liquidation; Support seen at 1056.6
MCX Zinc under fresh selling; Support seen at 187.1
MCX Copper under short covering; Resistance seen at 441.1
MCX Natural Gas under short covering; Support seen at 148.2
Technically Mentha Oil market is under short covering as market has witnessed drop in open interest by 2.11% to settled at 1066 while prices up 3.9 rupees.
Now MCX Mentha Oil is getting support at 1257.4 and below same could see a test of 1246.1 levels, and resistance is now likely to be seen at 1275.6, a move above could see prices testing 1282.5.
Mentha Oil on MCX settled up by 0.31% at 1268.6 on short covering after prices dropped as production is expected to increase by 30-40 percent during the year 2019-20. There were estimations of a 20-25% rise in sowing in 2019 versus last year.
It is likely to touch ~3 lakh ha—as per Central Institute of Medicinal and Aromatic Plants (CIMAP). It should be noted that this year’s production expectation of 38500- 39000 MT stood slightly above the average production of 36,968 MT productions seen in between 2013 and 2018.
Therefore expectations of a significant jump in production over last year due to is ruled out. Due to improving exports prospects, estimates for ending stocks has been reduced even lower than previous year. The output has not risen in past few years with India producing ~80% of global production and exporting ~75% of its output. Export demand of oil in global market is likely to be improved due to recovery in currency which is supportive for prices.
The surge in output is likely due to buoyancy in planting intentions, not only in the traditional pockets of Uttar Pradesh and Bihar in recent days, but also in Madhya Pradesh. Mentha sowing may witness a huge jump this year because of high returns farmers experienced the whole of last year. Mentha oil spot at Sambhal closed at 1405.10 per 1kg. Spot prices was down by Rs.7.10/-
–Mentha Oil trading range for the day is 1246.1-1282.5.
–Mentha Oil spot at Sambhal closed at 1405.10 per 1kg. Spot prices was down by Rs.7.10/-.
–Mentha Oil gained on short covering after prices dropped as production is expected to increase by 30-40 percent during the year 2019-20.
–There were estimations of a 20-25% rise in sowing in 2019 versus last year.
–Sowing may witness a huge jump this year because of high returns farmers experienced the whole of last year.
Courtesy: Kedia Commodities