MCX Mentha Oil likely to move in a range of 1063-1074
Commodity Online | June 01 2020
UPDATED 10:50:35 IST

NCDEX Chana under fresh buying; Support seen at 5056

MCX Cotton under fresh buying; Support seen at 17950

NCDEX Jeera under fresh selling; Resistance seen at 14140

NCDEX Turmeric under fresh selling; Support seen at 5844

NCDEX Mustard Seed under long liquidation; Resistance seen at 5343

Technically Mentha Oil market is under short covering as market has witnessed drop in open interest by 5.13% to settled at 37 while prices up 9.7 rupees.

Now MCX Mentha Oil is getting support at 1066 and below same could see a test of 1063 levels, and resistance is now likely to be seen at 1071.5, a move above could see prices testing 1074.

Mentha Oil yesterday settled up by 0.92% at 1069.1 on short covering after dropped amid due to low demand and expectation of a rise in acreage this season. There were expectations of higher area under cultivation for crop year 2020-21.

After a week's delay due to heavy rainfall, oil from new mentha crop has started arriving at the key wholesale market of Barabanki in Uttar Pradesh, traders said. So far, arrivals of the spice oil are at 5-10 drums.

New mint crop is being harvested in Bareilly, Sitapur and Konch districts. Demand is there for new mentha crop but it will take some time for bulk arrivals to hit markets. New arrivals are likely to pick up during the first week of June.

In the first week of June, arrivals are likely to touch 100 drums per day.During the peak arrival season after mid-June, 400-500 drums will collectively arrive daily in the markets of Chandausi, Sambhal and Barabanki in Uttar Pradesh.

Prices of the spice oil are also likely to remain on the downside as production is seen at a record high of 55,000-60,000 tn this year, up nearly 50%. The yield of mentha is expected to be high this time too, due to this, traders are not taking fresh positions in mentha.

Trading Ideas:
--Mentha Oil trading range for the day is 1063-1074.
--Mentha Oil spot at Sambhal closed below 1200 level as demand concerns.
--Mentha Oil gained on short covering after dropped amid due to low demand and expectation of a rise in acreage this season.
--There were expectations of higher area under cultivation for crop year 2020-21.
--The yield of mentha is expected to be high this time too, due to this, traders are not taking fresh positions in mentha.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil 2 10400.00
Coconut Oil 2.5 18800.00
Arecanut 107 36365.00
Sugar 3 3470.00

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