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Monday, November 29, 2021

MCX Menthol Oil under long liquidation; Support seen at 1660.6

MCX Nickel under fresh buying; Resistance seen at 923.2

MCX Aluminium likely to move in a range of 148.1-155.7

Natural Gas market under fresh buying; Support seen at 222.2

MCX Cotton market under short covering

Crude Oil market under fresh buying; Support seen at 5380

Technically Mentha Oil market is under long liquidation as market has witnessed drop in open interest by 4.01% to settled at 1150 while prices down 8.5 rupees.

Now MCX Mentha Oil is getting support at 1660.6 and below same could see a test of 1648.8 level, And resistance is now likely to be seen at 1689.1, a move above could see prices testing 1705.8.

Mentha Oil on MCX settled down by 0.51% at 1672.3 as spot markets are witnessing low demand amid adequate supply which weighed on prices. Low demand outlook in mentha oil in domestic as well as global market due to expectation of recovery in Indian Rupee against the U.S dollar.

Bumper crop harvest has been discounted in the market and market is moving upwards on rising demand from end users. Arrivals in Sambhal stood at 400 drums compared to 350 drum a day ago while in Barabanki supplies rose to 500 drums from 450 drums a day earlier.

According to preliminary estimates, mentha oil production in 2018-19 would be 40,000-45,000 ton against last year’s production of 35,000 tons. There could be chances of crop damage to certain extend due to unfavourable weather condition.

Mandi Department, which assumes Mantha as an agricultural product and receives the mandatory duty of one and a half percent, the GST of the same commerce tax department, Mentha crop, is not considered as agricultural product and 15 percent GST is charged.

Due to this double tax, the price of mentha product increases, whereas synthetic mentha is much cheaper, so many companies making mentha products have started using synthetic mentha. Due to which 50 lakh farmers of India who are producing mentha are being affected.  Mentha oil spot at Sambhal closed at 1864.10 per 1kg. Spot prices was up by Rs.18.90/-.

Trading Ideas:
–Mentha Oil trading range for the day is 1648.8-1705.8.
–Mentha Oil spot at Sambhal closed at 1864.10 per 1kg. Spot prices was up by Rs.18.90/.
–Mentha Oil dropped as spot markets are witnessing low demand amid adequate supply which weighed on prices.
–Bumper crop harvest has been discounted in the market and market is moving upwards on rising demand from end users.
–Arrivals in Sambhal stood at 400 drums compared to 350 drum a day ago while in Barabanki supplies rose to 500 drums from 450 drums a day earlier.

Courtesy: Kedia Commodities       

Source: Commodityonline.com

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