Technically Mentha Oil market is under long liquidation as market has witnessed drop in open interest by 6.29% to settled at 402 while prices down 42.1 rupees.
Now MCX Mentha Oil is getting support at 1244.4 and below same could see a test of 1229.4 level, And resistance is now likely to be seen at 1282.2, a move above could see prices testing 1305.
Mentha Oil on MCX settled down 3.23% at 1259.4 due to delay in monsoon, there has been an increase in the arrival of mentha. Spot markets are witnessed low demand amid improve supply in major physical centres of U.P. Almost 50% harvesting is completed and rest will expected to be done in the end of the month.
Actually, production in the current season has increased 30 to 40 percent more than last year. The impact of trade war between America and China will also be reflected on Mentha Oil prices.
China and US are big importers of Indian Mentha Oil This time exports of trade between the two countries will be less. Prices also seen pressure earlier amid expectations of higher acreage under mint in 2019 due to lucrative prices throughout last year.
Export demand of oil in global market is likely to be improved due to recovery in currency which is supportive for prices. Mentha sowing may witness a huge jump this year because of high returns farmers experienced the whole of last year.
Production of mentha oil is expected to rise to 48,000-50,000 tn in 2019 from 33,000-35,000 tn last year. This year, sowing of the crop started towards the end of last month, a couple of weeks later than usual due to extended cold weather in all major growing regions.
--Mentha Oil trading range for the day is 1229.4-1305.
--Mentha Oil spot at Sambhal closed at 1370.20 per 1kg. Spot prices was down by Rs.7.90/-.
--Mentha Oil prices dropped due to delay in monsoon, there has been an increase in the arrival of mentha.
--Almost 50% harvesting is completed and rest will expected to be done in the end of the month.
--Actually, production in the current season has increased 30 to 40 percent more than last year.
Courtesy: Kedia Commodities