MCX Mentha Oil likely to move in a range of 1193.6-1222.8
Commodity Online | October 10 2019
UPDATED 10:20:41 IST

MCX Mentha Oil likely to move in a range of 971.1-996.9

MCX Aluminium may trade between 137-139.2 levels

MCX Nickel likely to move in a range of 957.6-994.2

MCX Zinc under short covering; Resistance seen at 165

MCX Copper under fresh buying; Support seen at 462.2

Technically Mentha Oil market is under short covering as market has witnessed drop in open interest by 6.07% to settled at 1115 while prices up 8.3 rupees.

Now Mentha Oil is getting support at 1202.8 and below same could see a test of 1193.6 levels, and resistance is now likely to be seen at 1217.4, a move above could see prices testing 1222.8. 

Mentha Oil on MCX settled up by 0.69% at 1212 as low level buying seen as demand season starts. As per Central Institute of Medicinal and Aromatic Plants (CIMAP) mentha sowing touched 3 lakh ha. Sowing witnessed a huge jump this year because of high returns farmers experienced the whole of last year.

The surge in output is likely due to buoyancy in planting intentions, not only in the traditional pockets of Uttar Pradesh and Bihar in recent days, but also in Madhya Pradesh. Due to improving exports prospects, estimates for ending stocks has been reduced even lower than previous year. Export demand of oil in global market is likely to be improved due to recovery in currency which is supportive for prices.

Future demand of mentha oil is expected to rise as Colgate-Palmolive sees a rise in Sales by 4%; recorded net sales of Rs. 1,075.9 Crore for Q1. Official data on mentha, with respect to sowing or production and export, is not available as trade in the commodity is tightly controlled by a few. This season, the area under mint is expected to be 250,000-265,000 ha. Mentha oil spot at Sambhal closed at 1354.30 per 1kg. Spot prices was remain unchanged by Rs.0.00/-.

Trading Ideas:
--Mentha Oil trading range for the day is 1193.6-1222.8.
--Mentha Oil spot at Sambhal closed at 1354.30 per 1kg. Spot prices was remain unchanged by Rs.0.00/-.
--Mentha Oil settled up as low level buying seen as demand season starts.
--Due to improving exports prospects, estimates for ending stocks has been reduced even lower than previous year.
--The surge in output is likely due to buoyancy in planting intentions, not only in the traditional pockets of Uttar Pradesh and Bihar in recent days.

Courtesy: Kedia Commodities