Natural Gas market under short covering; Support seen at 227.8
Crude Oil market under fresh selling; Support seen at 3580
Silver market under fresh buying; Support seen at 39358
Gold market under short covering; Support seen at 32004
MCX Aluminium likely to move in a range of 126.5-130.7
Technically Mentha Oil market is under fresh selling as market has witnessed gain in open interest by 1.57% to settled at 776 while prices down 32.6 rupees.
Now MCX Mentha Oil is getting support at 1567.4 and below same could see a test of 1554.2 level, And resistance is now likely to be seen at 1598.4, a move above could see prices testing 1616.2.
Mentha Oil on MCX settled down by 2.02% at 1580.5 on profit booking tracking weakness in spot demand after prices gained amid low supply. Export demand of oil and its derivatives in global market is likely to be improved due to recovery in currency which is supportive for prices.
Farmers have started preparing to harvest mentha this time in many villages of Saheb Tehsil. Actually, this time demand was high in the market and availability of Mentha Oil was low. Crop in India also decreased.
In such a situation, there was a demand for Mentha Oil in China too. Farmers and businessmen are hoping that this time the harvest of mentha will be more. Because for a few years the price of Mentha was very low.
Since last few years the number has been steady to lower. But in response to decent appreciation in last years’ prices, farmers sowing improved resulting in rise in production prospects.
Therefore, the total availability of oil will rise this year. As of now traders expect a 20-25% rise in sowing versus last year.
It should be noted that this year’s production expectation of 38500- 39000 MT remains slightly above the average production of 36,968 MT productions seen in between 2013- 2018. Mentha oil spot at Sambhal closed at 1755.90 per 1kg. Spot prices was up by Rs.13.70/-.
Trading Ideas:
–Mentha Oil trading range for the day is 1554.2-1616.2.
–Mentha Oil spot at Sambhal closed at 1755.90 per 1kg. Spot prices was up by Rs.13.70/-.
–Mentha Oil dropped on profit booking tracking weakness in spot demand after prices gained amid low supply.
–Export demand of oil and its derivatives in global market is likely to be improved due to recovery in currency which is supportive for prices
–Farmers have started preparing to harvest mentha this time in many villages of Saheb Tehsil.
Courtesy: Kedia Commodities
Source: Commodityonline.com
