Nickel market under short covering; Support seen at 922
Zinc market under fresh selling; Support seen at 177.2
MCX Cotton market under short covering; Support seen at 23770
MCX Cardamom under short covering
NCDEX Jeera under fresh selling; Support seen at 19900
Technically Mentha oil market is under fresh selling as market has witnessed gain in open interest by 0.85% to settled at 1432 while prices down 15.5 rupees.
Now MCX Mentha Oil is getting support at 1513.9 and below same could see a test of 1497.5 levels and resistance is now likely to be seen at 1552.8, a move above could see prices testing 1575.3.
Mentha Oil on MCX settled down by 1% at 1530.4 amid subdued demand from consuming industries at the spot market. Further, ample stock positions on higher supplies from the major producing belts of Chandausi in Uttar Pradesh too weighed on mentha oil prices. Anticipation of bumper crop harvest and nearing of harvesting season adding negativity to the market.
As per preliminary estimates, acreage under mentha crop will rise this year as the farmers are encouraged by higher price in recent past. As per trade sources, all the major markets are likely to witness higher inflow of the produce. 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.
As per the data, the global demand of essential oil will increase in the coming years. Mentha oil spot at Sambhal closed at 1794.60 per 1kg. Spot prices were down by Rs.-4.70/-.
Trading Ideas:
–Mentha oil trading range for the day is 1497.5-1575.3.
–Mentha oil spot at Sambhal closed at 1794.60 per 1kg. Spot prices was down by Rs.-4.70/-.
–Mentha oil dropped amid subdued demand from consuming industries at the spot market.
–Further, ample stock positions on higher supplies from the major producing belts of Chandausi in Uttar Pradesh too weighed on mentha oil prices.
–Anticipation of bumper crop harvest and nearing of harvesting season adding negativity to the market.
Courtesy: Kedia Commodities
Source: Commodityonline.com
