Technically Mentha Oil market is under long liquidation as market has witnessed drop in open interest by 11.21% to settled at 840 while prices down 26.6 rupees.
Now MCX Mentha Oil is getting support at 1266.2 and below same could see a test of 1259.7 levels, and resistance is now likely to be seen at 1284.1, a move above could see prices testing 1295.5.
Mentha Oil on MCX settled down by 2.05% at 1272.6 as there has been an increase in the arrival of mentha. Pressure also seen after the Bihar state government has completely banned all types of pan masala. Currently, this ban has been imposed for 12 months.
Production is expected to increase by 30-40 percent during the year 2019-20. Spot markets are witnessed slow demand amid low arrivals in major physical centres in Uttar Pradesh. 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. There were estimations of a 20-25% rise in sowing in 2019 versus last year. Mentha oil spot at Sambhal closed at 1416.80 per 1kg. Spot prices was down by Rs.26.20/-.
--Mentha Oil trading range for the day is 1259.7-1295.5.
--Mentha Oil spot at Sambhal closed at 1416.80 per 1kg. Spot prices was down by Rs.26.20/-.
--Mentha Oil settled down as there has been an increase in the arrival of mentha.
--Production is expected to increase by 30-40 percent during the year 2019-20.
--Spot markets are witnessed slow demand amid low arrivals in major physical centres in Uttar Pradesh.
Courtesy: Kedia Commodities