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Thursday, October 21, 2021

MCX Mentha Oil likely to trade in a range of 1623-1682

MCX Nickel likely to move in a range of 892.8-927.6

MCX Aluminium likely to move in a range of 130.5-132.9

NCDEX Chana under long liquidation; Support seen at 4231

MCX Cotton under long liquidation

NCDEX Jeera under long liquidation

Technically now MCX Mentha Oil is getting support at 1641.5 and below same could see a test of 1623 level,And resistance is now likely to be seen at 1671, a move above could see prices testing 1682.

Mentha Oil on MCX settled up by 0.45% at 1659.9 on short covering after prices dropped due to low demand at major physical centers.

Further upside seen limited amid expectations of higher acreage under mint in 2019 due to lucrative prices throughout last year.

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.

Production of mentha oil is expected to rise to 48,000-50,000 tn in 2019 from 33,000-35,000 tn last year.

This year, sowing of the crop started towards the end of last month, a couple of weeks later than usual due to extended cold weather in all major growing regions.

Official data on mentha, with respect to sowing or production and export, is not available as trade in the commodity is tightly controlled by a few. This season, the area under mint is expected to be 250,000-265,000 ha.

Speculation that German major BASF SE has re-started deliveries of synthetic mentha oil will also be a deterrent to prices. BASF is completing its previous orders which were left pending after the manufacturing unit caught fire last year.

They may start taking fresh orders tentatively by March. Mentha oil spot at Sambhal closed at 1718.20 per 1kg. Spot prices was down by Rs.0.30/.

Trading Ideas:
–Mentha Oil trading range for the day is 1623-1682.
–Mentha Oil spot at Sambhal closed at 1718.20 per 1kg. Spot prices was down by Rs.0.30/-.
–Mentha Oil gained on short covering after prices dropped due to low demand at major physical centers.
–Further upside seen limited amid expectations of higher acreage under mint in 2019 due to lucrative prices throughout last year.
–Mentha sowing may witness a huge jump this year because of high returns farmers experienced the whole of last year.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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