Aluminium market is under short covering; Support seen at 146.9
Nickel market under short covering; Support seen at 923.9
Zinc market under short covering; Support seen at 177.7
Copper market under fresh buying; Support seen at 444.7
MCX Cotton under short covering; Resistance seen at 22366.6
Technically Mentha oil market is under long liquidation as market has witnessed drop in open interest by 15.25% to settled at 928 while prices down 6.6 rupees.
Now MCX Mentha oil is getting support at 1688 and below same could see a test of 1670.6 levels and resistance is now likely to be seen at 1729.9, a move above could see prices testing 1754.4.
Mentha oil on MCX settled down 0.39% at 1705.5 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.
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.
Trading Ideas:
–Mentha oil trading range for the day is 1670.6-1754.4.
–Mentha oil spot at Sambhal closed at 1876.20 per 1kg. Spot prices was down by Rs.-27.30/-.
—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
