Fundamental Analysis

Overseas buyers have placed very few orders in last fortnight. Strengthen dollar has also restrained them to go for huge orders. Therefore, international demand might continue its slow pace movement in near term.

Huge stocks at exchange warehouses are also pressurizing the Mentha prices as most of the traders prefer exchange platform to deliver their oil. Hence, this may continue further until the difference between spot and futures get widened in the coming weeks.

Despite of lower stocks this year, export demand hasn’t picked up the pace as it was expected earlier. However, the coming months might witness some good demand from European and Chinese market.

Demand from local stockists and exporters has weakened in the spot from coupled of days, due to ample stocks holdings by stockists and weak demand from local pharma and guthka companies.

Technical Analysis

Mentha future (NCDEX Oct Contract) closed at Rs.548 on Friday, below from the previous day’s close of 570.80.

Prices closed below its 5 days, 20 days and 65 days SMA indicating a bearish trend. RSI at 22.03 is currently moving sideways.

NCDEX Oct contract is likely to trade at lower level for the intraday.

Outlook

Sluggish overseas demand accompanied with higher warehouse stocks might result in further fall in Mentha futures. However, higher seasonal demand from local and overseas buyers in winter might help the Mentha prices to recover and trade with firm sentiment in the medium as well as long term.

Courtesy: Angel Commodities