MCX Crude Oil expected to trade in a range between 5152-5304
MCX Silver likely to trade in a range between 37558-38450
MCX Nickel likely to move in a range of 907.9-952.9
MCX Aluminium may trade between 146.2-151.4 levels
MCX Cotton under fresh selling; Support seen at 22140
Technically Mentha Oil market is under fresh selling as market has witnessed gain in open interest by 12.84% to settled at 1248 while prices down 39.9 rupees.
Now MCX Mentha Oil is getting support at 1617.7 and below same could see a test of 1603.7 level, And resistance is now likely to be seen at 1655.6, a move above could see prices testing 1679.5.
Mentha Oil on MCX settled down by 2.39% at 1631.7 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 1841.60 per 1kg. Spot prices was down by Rs.19.50/-.
Trading Ideas:
–Mentha Oil trading range for the day is 1603.7-1679.5.
–Mentha Oil spot at Sambhal closed at 1841.60 per 1kg. Spot prices was down by Rs.19.50/-.
–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
