Short covering seen in MCX Aluminium
MCX Nickel likely to move in a range of 910.2-942.8
MCX Zinc under short covering; Support seen at 176.9
MCX Copper may move in a range of 411.9-425.7
MCX Natural Gas under fresh selling; Support seen at 189.5
Technically Mentha Oil market is under short covering as market has witnessed drop in open interest by 6.99% to settled at 918 while prices up 7.6 rupees.
Now MCX Mentha Oil is getting support at 1554.6 and below same could see a test of 1529.6 level, And resistance is now likely to be seen at 1619.3, a move above could see prices testing 1659.
Mentha Oil settled up amid rise in demand from consuming industries at the spot market. Further, restricted supplies from the major producing belts of Chandausi in Uttar Pradesh too supported mentha oil prices’ uptrend.
Spot markets are also witnessing strong consumption demand amid restricted supplies. Bumper crop harvest has been discounted in the market and market is moving upwards on rising demand from end users.
The Multi Commodity Exchange of India will double the total additional margin to 10% on both buy and sell side of all running as well as yet-to-be-launched contracts of mentha oil from Monday.
Despite the peak season of harvest in June, prices of mentha oil have risen over 20% since the beginning of June as farmers held back stocks. Farmers are holding back stocks as they are expecting prices to rise to 1,800 rupees a kg in the next two-three months.
As per preliminary estimates, acreage under mentha crop will rise this year as the farmers are encouraged by higher price in recent past. As per trade sources, all the major markets are likely to witness higher inflow of the produce.
There could be chances of crop damage to certain extend due to unfavourable weather condition. Besides, farmers are likely to hold back the stocks as the present prices are not remunerative for them.
–Mentha Oil trading range for the day is 1529.6-1659.
–Mentha Oil spot at Sambhal closed at 1855.70 per 1kg. Spot prices was up by Rs.44.40/-.
–Mentha Oil prices ended with gains amid rise in demand from consuming industries at the spot market.
–Spot markets are also witnessing strong consumption demand amid restricted supplies.
–There could be chances of crop damage to certain extend due to unfavourable weather condition.
Courtesy: Kedia Commodities