NCDEX Chana under long liquidation
MCX Cotton under short covering; Resistance seen 21000
NCDEX Jeera may move in a range of 16780-17480
NCDEX Turmeric likely to move in a range of 6480-6728
Aluminium market under fresh selling; Support seen at 130.8
Technically Mentha oil market is under long liquidation as market has witnessed drop in open interest by 12.68% to settled at 613 while prices down 30.9 rupees.
Now MCX Mentha Oil is getting support at 1545.9 and below same could see a test of 1531.8 levels and resistance is now likely to be seen at 1584.4, a move above could see prices testing 1608.8.
Mentha oil on MCX settled down by -1.94% at 1560.1 on profit booking after prices gained tracking firmness in spot demand amid low supply. However, upside seen limited amid expectations of higher acreage under mint in 2019 due to lucrative prices throughout last year.
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 1730.50 per 1kg. Spot prices was down by Rs.-19.70/-.
Trading Ideas:
–Mentha oil trading range for the day is 1531.8-1608.8.
–Mentha oil spot at Sambhal closed at 1730.50 per 1kg. Spot prices was down by Rs.-19.70/-.
–Mentha oil settled down on profit booking after prices gained tracking firmness in spot demand amid low supply.
–However, upside seen limited amid expectations of higher acreage under mint in 2019 due to lucrative prices throughout last year.
–Export demand of oil in global market is likely to be improved due to recovery in currency which is supportive for prices.
Courtesy: Kedia Commodities
Source: Commodityonline.com
