MCX Zinc likely to trade in a range between 177.3-184.5
MCX Copper likely to trade in a range between 414.9-430.5
MCX Nickel likely to move in a range of 747.4-781
MCX Aluminium likely to move in a range of 133.7-136.7
MCX Natural Gas may trade in a range between 237.7-282.3
Technicallyc Mentha Oil market is under short covering as market has witnessed drop in open interest by 2.84% to settled at 924 while prices up 16.3 rupees.
Now MCX Mentha Oil is getting support at 1467.5 and below same could see a test of 1448.5 level, And resistance is now likely to be seen at 1498, a move above could see prices testing 1509.5.
Mentha Oil on MCX settled up by 1.11% at 1486.6 due to bullish demand outlook from domestic market as well as exporters. Spot markets are also witnessing strong consumption demand amid restricted supplies.
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.
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.Mentha oil spot at Sambhal closed at 1693.00 per 1kg. Spot prices was up by Rs.2.90/-.
Trading Ideas:
–Mentha Oil trading range for the day is 1448.5-1509.5.
–Mentha Oil spot at Sambhal closed at 1693.00 per 1kg. Spot prices was up by Rs.2.90/-.
–Mentha Oil dropped 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.
–Bumper crop harvest has been discounted in the market and market is moving upwards on rising demand from end users.
Courtessy: Kedia Commodities
Source: Commodityonline.com
