NCDEX Chana under long liquidation
NCDEX Chana under long liquidation
MCX Cotton under long liquidation
NCDEX Jeera may move in a range of 16180-16660 levels
NCDEX Turmeric likely to move in a range of 6414-6574
Technically Mentha Oil market is under short covering as market has witnessed drop in open interest by 4.11% to settled at 490 while prices up 19.6 rupees.
Now MCX Mentha Oil is getting support at 1498.5 and below same could see a test of 1484 level, And resistance is now likely to be seen at 1527, a move above could see prices testing 1541.
Mentha Oil on MCX settled up by 1.31% at 1513.1 on short covering after prices dropped due to low demand at major physical centers. Weakness in Indian rupee against the US dollar added negative sentiments in the market.
Pressure also seen 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.
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. 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 1664.10 per 1kg. Spot prices was up by Rs.23.80/-.
Trading Ideas:
–Mentha Oil trading range for the day is 1484-1541.
–Mentha Oil spot at Sambhal closed at 1664.10 per 1kg. Spot prices was up by Rs.23.80/-.
–Mentha Oil prices gained on short covering after prices dropped due to low demand at major physical centers.
–Export demand of oil in global market is likely to be improved due to recovery in currency which is supportive for prices.
–Mentha sowing has doubled in Madhya Pradesh due to high returns it gave in the last few years.
Courtesy: Kedia Commodities
Source: Commodityonline.com
