MCX Mentha Oil likely to move in a range of 1238.7-1300.3
Commodity Online | November 11 2019
UPDATED 10:20:27 IST

MCX Mentha Oil under fresh buying; Resistance seen at 1321.4

NCDEX Chana under fresh buying; Resistance seen at 4423

MCX Cotton under fresh selling; Support seen at 19000

NCDEX Jeera under fresh buying; Support seen at 15790

MCX Aluminium may trade between 131.7-133.1 levels

Technically Mentha Oil market is under short covering as market has witnessed drop in open interest by 3.04% to settled at 989 while prices up 17.6 rupees.

Now MCX Mentha Oil is getting support at 1257 and below same could see a test of 1238.7 level, and resistance is now likely to be seen at 1287.8, a move above could see prices testing 1300.3.

Mentha Oil on MCX settled up 1.4% at 1275.4 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 stock of mentha oil in MCX-accredited warehouses stood at 3,78,192.30 kg at the end of last week, down 43,234.32 kg from its previous week. 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. 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.

Trading Ideas:
--Mentha Oil trading range for the day is 1238.7-1300.3.
--Mentha Oil spot at Sambhal closed at 1378.80 per 1kg. Spot prices was up by Rs.8.40/-.
--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 stock of mentha oil in MCX-accredited warehouses stood at 3,78,192.30 kg at the end of last week, down 43,234.32 kg from its previous week.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil 1 9050.00
Coconut Oil 0.1 16900.00
Arecanut 25 15000.00
Sugar 0.5 4000.00

More