MCX Nickel under short covering; Support seen at 906.7
MCX Aluminium under fresh selling; Resistance seen at 149.2
MCX Cotton may trade between 22610-23010 levels
Short covering seen in MCX Cardamom
NCDEX Jeera under short covering; Resistance seen at 20542
Technically Mentha Oil market is under long liquidation as market has witnessed drop in open interest by 5.44% to settled at 921 while prices down 12.7 rupees.
Now MCX Mentha Oil is getting support at 1690.8 and below same could see a test of 1679.2 level, And resistance is now likely to be seen at 1712.5, a move above could see prices testing 1722.6.
Mentha Oil on MCX settled down 0.74% at 1702.3 as spot markets are witnessing low demand amid adequate supply which weighed on prices. Low demand outlook in mentha oil in domestic as well as global market due to expectation of recovery in Indian Rupee against the U.S dollar. 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.
Due to this double tax, the price of mentha product increases, whereas synthetic mentha is much cheaper, so many companies making mentha products have started using synthetic mentha.
Trading Ideas:
–Mentha Oil trading range for the day is 1679.2-1722.6.
–Mentha Oil spot at Sambhal closed at 1856.60 per 1kg. Spot prices was down by Rs.9.20/-.
–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
