MCX Zinc expected to trade in a range between 181.2-193.2
MCX Copper likely to trade in a range between 425.8-453.6
MCX Natural Gas likely to trade between 293.9-343.1 range
MCX Crude Oil may trade in range between 3641-4225.
MCX Nickel expected to trade between 773.2-814.4 levels
Technically MCX Mentha Oil is getting support at 1635.9 and below same could see a test of 1616.2 level, And resistance is now likely to be seen at 1695.1, a move above could see prices testing 1734.6.
Mentha Oil on MCX settled down by 4% at 1655.7 due to surge in arrivals and tepid demand from domestic market weighed on prices. Arrivals of mentha oil in Sambhal market doubled to 100 drums (1 drum = 180 kg).
The supply of mentha oil in Chandausi, Uttar Pradesh’s major producing area of mentha oil, has increased. 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.Mentha oil spot at Sambhal closed at 1819.40 per 1kg. Spot prices was down by Rs.60.40/-.
Trading Ideas:
–Mentha Oil trading range for the day is 1616.2-1734.6.
–Mentha Oil spot at Sambhal closed at 1819.40 per 1kg. Spot prices was down by Rs.60.40/-.
–Mentha Oil prices ended with losses due to surge in arrivals and tepid demand from domestic market weighed on prices.
–Arrivals of mentha oil in Sambhal market doubled to 100 drums (1 drum = 180 kg).
–The supply of mentha oil in Chandausi, Uttar Pradesh’s major producing area of mentha oil, has increased.
Courtesy: Kedia Commodities
Source: Commodityonline.com
