MCX Copper under fresh selling; Resistance seen at 419.1
MCX Zinc under fresh selling; Support seen at 168.6
MCX Nickel likely to move in a range of 915.4-958.2
Short covering seen in MCX Aluminium; Support seen at 139.5
MCX Natural Gas may trade in a range between 186.8-192.4
Technically Mentha Oil market is under long liquidation as market has witnessed drop in open interest by 12.22% to settled at 1049 while prices down 64.1 rupees.
Now MCX Mentha Oil is getting support at 1514.1 and below same could see a test of 1488.8 level, And resistance is now likely to be seen at 1589.9, a move above could see prices testing 1640.4.
Mentha Oil on MCX settled down by 4% at 1539.3 on profit booking amid subdued demand from consuming industries at the spot market. Further, ample stock positions on higher supplies from the major producing belts of Chandausi in Uttar Pradesh too weighed on mentha oil prices.
Anticipation of bumper crop harvest and nearing of harvesting season adding negativity to the market. 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. According to estimates, mentha oil production in India for crop year 2016-17 will be around 38,000 tonnes.
As per the data, the global demand of essential oil will increase in the coming years. Mentha oil spot at Sambhal closed at 1865.40 per 1kg. Spot prices was up by Rs.5.60/-.
Trading Ideas:
–Mentha Oil trading range for the day is 1488.8-1640.4.
–Mentha Oil spot at Sambhal closed at 1865.40 per 1kg. Spot prices was up by Rs.5.60/-.
–Mentha Oil dropped on profit booking amid subdued demand from consuming industries at the spot market.
–Further, ample stock positions on higher supplies from the major producing belts of Chandausi in Uttar Pradesh too weighed on mentha oil prices.
–Anticipation of bumper crop harvest and nearing of harvesting season adding negativity to the market.
Courtesy: Kedia Commodities
Source: Commodityonline.com
