Aluminium market under short covering; Support seen at 140.9
MCX Nickel may trade between 906.9-957.3 levels
MCX Zinc expected to trade between 174.7-186.5 levels
MCX Copper likely to trade in a range between 415.7-440.1
Natural Gas market under short covering; Support seen at 187.2
Technically Mentha Oil market is under long liquidation as market has witnessed drop in open interest by 22.71% to settled at 599 while prices down 46.1 rupees.
Now MCX Mentha Oil is getting support at 1482.8 and below same could see a test of 1461.4 levels and resistance is now likely to be seen at 1537.9, a move above could see prices testing 1571.6.
Mentha Oil on MCX settled down by 2.97% at 1504.3 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 1782.80 per 1kg. Spot prices was down by Rs.-6.00/-.
Trading Ideas:
–Mentha oil trading range for the day is 1461.4-1571.6.
–Mentha oil spot at Sambhal closed at 1782.80 per 1kg. Spot prices was down by Rs.-6.00/-.
–Mentha oil dropped 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
