Aluminium market under short covering; Support seen at 140.5
MCX Nickel under short covering; Support seen at 937.2
MCX Copper may trade between 418.7-430.1 levels
Natural Gas market under fresh buying; Support seen at 191.5
Crude Oil market under fresh buying; Support seen at 4742
Technically Mentha Oil market is under long liquidation as market has witnessed drop in open interest by 2.4% to settled at 1583 while prices down 62.7 rupees.
Now MCX Mentha Oil is getting support at 1496.4 and below same could see a test of 1486.7 levels and resistance is now likely to be seen at 1525.4, a move above could see prices testing 1544.7.
Mentha Oil on MCX settled down by -4% at 1506 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.
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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 1718.20 per 1kg. Spot prices was remain unchangeby Rs.0.00/-.
Trading Ideas:
–Mentha Oil trading range for the day is 1486.7-1544.7.
–Mentha oil spot at Sambhal closed at 1718.20 per 1kg. Spot prices was remain unchangeby Rs.0.00/-.
–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
