MCX Mentha Oil under short covering; Support seen at 1276.5
MCX Aluminium may trade between 129.8-131 levels
MCX Nickel likely to move in a range of 1051.1-1100.7
MCX Zinc under long liquidation; Resistance seen at 187.5
MCX Copper under long liquidation; Resistance seen at 434
Mentha oil on MCX settled down -0.21% at 848.1 on the back of weak demand from consuming industries at the domestic spot market. Besides, ample stock positions due to rising arrivals from major growing regions also fuelled the downtrend. While support seen after the unscheduled rains showers in growing areas in UP would adversely affect harvesting process and that factor remains important as of now.
Markets had remained weak for quite sometime from lack of demand amidst reports of higher sowing activities. The preliminary mandi source suggests that production of menthol is likely to be around 34-35000 tonnes during 2016-17 as compared to 32000 tonnes in 2015-16. While some sources estimate that total area under Mentha planting has dropped by 25% to 1.70 lakh ha this season resulting into a proportionate fall in Mentha oil production this year. However a pick up in sowing over last few weeks have ensured prices falling for the commodity, as low demand further pressurized market sentiments. As per latest reports Mentha Oil export in 2014-15 has surpassed targeted 21000 tons by 23% at 25750 tons. Export in 2013-14 was 24500 tons.
Higher carryover stocks and lack of strong demand have prevented strong upside movement till now. At Sambhal market total arrivals are at 200 Drums(1-drum=180kg), up by 50 Drums(1-drum=180kg) from previous trading day. At Chandausi market total arrivals are at 20 Drums(1-drum-180kg), down by 5 Drums(1-drum-180kg) from previous day’s arrivals. Technically market is under fresh selling as market has witnessed gain in open interest by 4.04% to settled at 3661 while prices down -1.8 rupee, now Mentha oil is getting support at 841.3 and below same could see a test of 834.5 level, and resistance is now likely to be seen at 853.9, a move above could see prices testing 859.7.
--Mentha oil trading range for the day is 834.5-859.7.
--Mentha oil spot at Sambhal closed at 945.60 per 1kg. Spot prices is down by Rs.-13.30/-.
--Mentha oil settled down on the back of weak demand from consuming industries at the domestic spot market.
--Markets had remained weak for quite sometime from lack of demand amidst reports of higher sowing activities.
--At Sambhal market total arrivals are at 200 Drums(1-drum=180kg), up by 50 Drums(1-drum=180kg) from previous trading day.Courtesy: Kedia Commodities