MCX Aluminium may trade between 141.4-148.6 levels
MCX Nickel likely to trade in range between 963.5-1022.7
MCX Zinc expected to trade between 189.4-199.2 levels
MCX Copper may trade between 439-456.6 levels
Natural Gas market under short covering; Resistance seen at 200
Technically Mentha Oil market is under short covering as market has witnessed drop in open interest by 8.84% to settled at 1465.
Now MCX Mentha Oil is getting support at 1292.9 and below same could see a test of 1267 level, And resistance is now likely to be seen at 1331.8, a move above could see prices testing 1344.8.
Mentha Oil on MCX settled up by 4% at 1318.9 taking positive cues from the spot market on surging demand from consuming industries at the spot market. Prices also seen supported due to restricted supplies from the major producing belts of Chandausi in Uttar Pradesh.
Anticipation of bumper crop harvest and nearing of harvesting season limiting the upside. 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. 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. However, in recent years, the growth in production and consumption of synthetic mentha has influenced the demand for natural mentha.
As per sources, India contributes around 80% to the total global mentha oil production. Total global production stood at around 48,000 tonnes, out of which India produces between 30,000-40,000 tonnes. Mentha oil spot at Sambhal closed at 1540.70 per 1kg. Spot prices was up by Rs.58.10/-.
Trading Ideas:
–Mentha Oil trading range for the day is 1267-1344.8.
–Mentha Oil spot at Sambhal closed at 1540.70 per 1kg. Spot prices was up by Rs.58.10/-.
–Mentha Oil settled up taking positive cues from the spot market on surging demand from consuming industries.
–Prices also seen supported due to restricted supplies from the major producing belts of Chandausi in Uttar Pradesh.
–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
