14.3 C
New York
Tuesday, May 17, 2022

MCX Menthol Oil under fresh selling; Resistance seen at 1723.4

MCX Nickel under fresh selling; Support seen at 911.1

MCX Aluminium may trade between 147.4-152

MCX Cotton under long liquidation

MCX Cardamom under short covering

Natural Gas market under long liquidation; Support seen at 234.7

Technically Mentha Oil market is under fresh selling as market has witnessed gain in open interest by 2.36% to settled at 956 while prices down 7.5 rupees.

Now MCX Mentha Oil is getting support at 1696.6 and below same could see a test of 1684.9 level, And resistance is now likely to be seen at 1723.4, a move above could see prices testing 1738.5.

Mentha Oil on MCX settled down by 0.44% at 1708.4 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. Mentha oil spot at Sambhal closed at 1870.30 per 1kg. Spot prices was up by Rs.1.50/-.

Trading Ideas:
–Mentha Oil trading range for the day is 1684.9-1738.5.
–Mentha Oil spot at Sambhal closed at 1870.30 per 1kg. Spot prices was up by Rs.1.50/-.
–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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