21.6 C
New York
Tuesday, July 5, 2022

MCX Mentha Oil under fresh selling; Support seen at 1578.1

MCX Nickel under fresh buying; Resistance seen at 797.6

MCX Aluminium under fresh buying; Support seen at 137.9

NCDEX Chana under fresh selling; Resistance seen at 4727

MCX Cotton under short covering

NCDEX Jeera may trade between 18875-19115 levels

Technically Mentha Oil market is under fresh selling as market has witnessed gain in open interest by 3.36% to settled at 1170 while prices down 65.9 rupees.

Now MCX Mentha Oil is getting support at 1578.1 and below same could see a test of 1572.5 level, And resistance is now likely to be seen at 1594.8, a move above could see prices testing 1605.9.

Mentha Oil on MCX settled down by 4% at 1583.6 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 Mentha 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 1759.40 per 1kg. Spot prices was down by Rs 72.10/-.

Trading Ideas:
–Mentha Oil trading range for the day is 1572.5-1605.9.
–Mentha Oil spot at Sambhal closed at 1759.40 per 1kg. Spot prices was down by Rs.72.10/-.
–Mentha Oil settled down as spot markets are witnessing low demand amid adequate supply which weighed on prices.
–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.
–However, in recent years, the growth in production and consumption of synthetic mentha has influenced the demand for natural mentha.

Courtesy: Kedia Commodities             

Source: Commodityonline.com

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