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Mentha Oil market under long liquidation; Support seen at 956.7
Commodity Online | May 19 2017
UPDATED 12:08:35 IST

Mentha Oil market under fresh buying; Support seen at 918

Aluminium market under short covering; Support seen at 120

Zinc market under fresh buying; Support seen at170.5

MCX Copper under fresh buying; Resistance seen at 373.4

Long liquidation seen in NCDEX Soyabean

Technically Mentha oil market is under long liquidation as market has witnessed drop in open interest by -6.08% to settled at 1345 while prices down 3.1 rupees.

Now Mentha oil is getting support at 956.7 and below same could see a test of 952.1 level, And resistance is now likely to be seen at 965.3, a move above could see prices testing 969.3.

Mentha oil on MCX settled down by 0.32% at 961.4 amid reports that carryover stocks are huge against the current consumption level. As per sources, local demand is moderate from both the local industries as well as stockists.

The arrivals have slightly increased in the major spot markets of Uttar Pradesh, to meet the existing demand for the produce. Also in recent years the production and consumption of synthetic mentha has increased which has impacted the demand of natural mentha.

As on now stock positions of Mentha in MCX accredited warehouses were around 4499 drums, while in process were 24 drums, both are 24 drums more in comparison to the previous day. Short term outlook remain weak as first of all prices are trading below 980 level mark while the huge carryover stock of mentha oil and also prices trading with weakness leading to a glut with synthetic mint oil garnering larger share of the market.

Sentimental weakness will continuous for mentha demand as the key consumption sector (Tobacco products) is witnessing slow down in demand. Prices had been under pressure since March after Yogi Adityanath, the Chief Minister of Uttar Pradesh, has banned paan chewing and gutka or tobacco in all government offices in the state.  Mentha oil spot at Sambhal closed at 1070.10 per 1kg. Spot prices was down by Rs.-6.10/-.

Trading Ideas:
--Mentha oil trading range for the day is 952.1-969.3.
--Mentha oil spot at Sambhal closed at 1070.10 per 1kg. Spot prices was down by Rs.-6.10/-.
--Mentha oil settled down amid reports that carryover stocks are huge against the current consumption level.
--As per sources, local demand is moderate from both the local industries as well as stockists.
--The arrivals have slightly increased in the major spot markets of Uttar Pradesh, to meet the existing demand for the produce.

Courtesy: Kedia Commodities

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