Aluminium may trade between 143.4-147.8 levels
MCX Nickel likely to trade in a range between 879.6-918.2
Zinc market under fresh selling; Support seen at 164.7
MCX Copper expected to trade between 417.1-435.9 levels
MCX Natural Gas may trade between 196.8-204.2 levels
Technically Mentha oil market is under long liquidation as market has witnessed drop in open interest by 2.21% to settled at 1241 while prices down 57.7 rupees.
Now Mentha Oil is getting support at 1701.5 and below same could see a test of 1681.9 levels and resistance is now likely to be seen at 1751.8, a move above could see prices testing 1782.5.
Mentha oil on MCX settled down -3.24% at 1721.2 amid subdued demand at the spot market and ample stock positions on higher supplies. 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. It should be noted that this year’s production expectation of 38500-39000 MT remains slightly above the average production of 36,968 MT productions seen in between 2013-2018.
Therefore, expectations of a significant jump in production over last year due to is ruled out. Rains in growing regions of UP have reportedly adversely affected the oil production process, therefore supporting futures prices. Due to improving exports prospects, estimates for ending stocks has been reduced even lower than previous year. High prices seen last year have ensured better sowing this year.
But fall in carry forward stocks, over last year could support prices in medium term. 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.
Trading Ideas:
–Mentha oil trading range for the day is 1681.9-1782.5.
–Mentha oil spot at Sambhal closed at 1908.90 per 1kg. Spot prices was down by Rs.-1.40/-.
–Mentha oil prices dropped amid subdued demand at the spot market and ample stock positions on higher supplies.
–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.
Courtesy: Kedia Commodities
Source: Commodityonline.com
