MCX Aluminium may trade between 148.6-152.4
MCX Cotton under short covering; Support seen at 22526.6
MCX Cardamom likely to move in a range of 1357.6-1368
NCDEX Jeera under fresh buying; Resistance seen at 20113
Natural Gas market under long liquidation
Technically Mentha Oil market is under long liquidation as market has witnessed drop in open interest by 1.66% to settled at 948.
Now MCX Mentha Oil is getting support at 1677.5 and below same could see a test of 1666.9 level, And resistance is now likely to be seen at 1702.9, a move above could see prices testing 1717.7.
Mentha Oil on MCX settled down 1.2% at 1688.1 as traders angry with the checking in adulteration, have stopped buying of mentha oil. In two days’ business has suffered a whopping of two crores.
If this is the case, local exporters of menthol products will have to rely entirely on the mandis of other cities. But the good thing is that the shopkeepers and exporters who are purchasing Mentha are continuously communicating in some way.
Both sides want a solution to the latest deadlock. manufacturers of exporters and menthol products say that the adulterous mentha oil is coming in large quantities of markets. Synthetic mentha oil adulteration and some other substances are being mixed in natural mentha oil.
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.
Mandi Department, which assumes Mentha as an agricultural product and receives the mandatory duty of one and a half percent, the GST of the same commerce tax department, Mentha crop, is not considered as agricultural product and 15 percent GST is charged.
Trading Ideas:
–Mentha Oil trading range for the day is 1666.9-1717.7.
–Mentha Oil spot at Sambhal closed at 1865.60 per 1kg. Spot prices was up by Rs.12.10/-.
–Mentha Oil dropped as spot markets are witnessing low demand amid adequate supply which weighed on prices.
–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.
Courtesy: Kedia Commodities
Source: Commodityonline.com
