MCX Natural Gas expected to trade in a range between 211.6-226
MCX Nickel likely to move in a range of 909.3-965.3
MCX Aluminium may trade between 145-151.2 levels
Crude Oil market under fresh buying; Support seen at 5179
Silver market under short covering; Support seen at 37499
Technically Mentha Oil market is under fresh selling as market has witnessed gain in open interest by 13.42% to settled at 938 while prices down 41.6 rupees.
Now MCX Mentha Oil is getting support at 1664.9 and below same could see a test of 1647.9 level, And resistance is now likely to be seen at 1709.4, a move above could see prices testing 1736.9.
Mentha Oil on MCX settled down by 2.41% at 1681.9 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. Mentha oil spot at Sambhal closed at 1868.50 per 1kg. Spot prices was down by Rs.7.70/-.
Trading Ideas:
–Mentha Oil trading range for the day is 1647.9-1736.9.
–Mentha Oil spot at Sambhal closed at 1868.50 per 1kg. Spot prices was down by Rs.7.70/-.
–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
