Aluminium market under short covering; Support seen at 143.9
MCX Cotton likely to move in a range of 23110-23430
MCX Cardamom under long liquidation; Resistance seen at 1323.5
NCDEX Jeera may trade between 18685-20085 levels
Long liquidation seen in NCDEX Turmeric
Mentha Oil on MCX settled up 0.74% at 1721.7 due to bullish demand outlook from domestic market as well as exporters. Spot markets are also witnessing strong consumption demand amid restricted supplies. Bumper crop harvest has been discounted in the market and market is moving upwards on rising demand from end users.
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.
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.
Trading Ideas:
–Mentha Oil trading range for the day is 1703.9-1733.9.
–Mentha oil spot at Sambhal closed at 1937.50 per 1kg. Spot prices were up by Rs.8.30/-.
–Mentha oil prices rallied due to bullish demand outlook from domestic market as well as exporters.
–Spot markets are also witnessing strong consumption demand amid restricted supplies.
–Bumper crop harvest has been discounted in the market and market is moving upwards on rising demand from end users.
Courtesy: Kedia Commodities
Source: Commodityonline.com
