MCX Mentha Oil expected to trade 892.1-907.1 levels
Commodity Online | September 19 2016
UPDATED 15:23:55 IST

MCX Mentha Oil likely to move in a range of 931.1-948.7

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Mentha Oil on MCX settled down -0.31% at 898.2 amid fall in physical demand from major consuming industries in the domestic spot market. However, restricted supplies from Chandausi in Uttar Pradesh, capped some losses. Overall sentiments dropped as export and domestic demand are not picking up also as per last months udpate exports have registered a decline in volume terms.

China and Japan have reduced their buying quantity in the recent past due to the economic slowdown had impacted Mint product's exports which declined substantially from the export basket by 18% in terms of volume and 4% in terms of value year-on-year. Exports of mint products stood at 21,150 tonne in FY16 valued at R2,577.59 crore against 25,750 tonne valued at R2,689.25 crore in FY15.

The Spices Board said that the bulk of the exports is in the form of crystallised menthol. Mentha oil prices have fallen almost since last some period due to the fund crisis in the market and lower Chinese demand for Indian Mentha oil. Initially, India’s mentha oil output was estimated to remain lower this year from 32,000 tonnes produced during last year. But, rainfalls later improved overall scenario that got worsened with scorching heat waves in May. At Barabanki market arrivals were reported at 400 Drums(1-drum-180kg), unchanged as compared to previous day’s arrival.

At Chandausi market sources reported arrivals at 5 Drums(1-drum-180kg), steady as against previous day’s arrival. Technically market is under long liquidation as market has witnessed drop in open interest by -2.53% to settled at 4779 while prices down -2.8 rupee, now Mentha Oil is getting support at 895.1 and below same could see a test of 892.1 level, and resistance is now likely to be seen at 902.6, a move above could see prices testing 907.1.

Trading Ideas:
--Mentha Oil trading range for the day is 892.1-907.1.
--Mentha Oil spot at Sambhal closed at 1031.10 per 1kg. Spot prices is down by Rs.-3.00/-.
--Mentha Oil prices dropped amid fall in physical demand from major consuming industries in the domestic spot market.
--Mentha Oil prices have fallen almost since last some period due to the fund crisis in the market and lower Chinese demand for prices.
--India’s mentha oil output was estimated to remain lower this year from 32,000 tonnes produced during last year.

Courtesy: Kedia Commodities