Technically Mentha Oil market is under fresh buying as market has witnessed gain in open interest by 0.56% to settled at 1073 while prices up 22.6 rupees.
Now MCX Mentha Oil is getting support at 1281.4 and below same could see a test of 1268.3 level, and resistance is now likely to be seen at 1303.3, a move above could see prices testing 1312.1.
Mentha Oil on MCX settled up 1.78% at 1294.6 as low level buying seen ahead of demand season starts in August. 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. This led to a fall in prices. 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. The company expects a pickup in rural demand over the coming quarters.
--Mentha Oil trading range for the day is 1268.3-1312.1.
--Mentha Oil spot at Sambhal closed at 1405.90 per 1kg. Spot prices was up by Rs.19.40/-.
--Mentha Oil prices gained as low level buying seen ahead of demand season starts in August.
--Sowing witnessed a huge jump this year because of high returns farmers experienced the whole of last year.
--Export demand of oil in global market is likely to be improved due to recovery in currency which is supportive for prices.
Courtesy: Kedia Commodities