Technically Mentha Oil market is under long liquidation as market has witnessed drop in open interest by 5.97% to settled at 803 while prices down 7.5 rupees.
Now MCX Mentha Oil is getting support at 1281.7 and below same could see a test of 1270.1 level, and resistance is now likely to be seen at 1312.2, a move above could see prices testing 1331.1.
Mentha Oil on MCX settled down 0.58% at 1293.3 as spot markets are witnessed low demand amid improving supply in major physical centres of U.P. Almost 50% harvesting is completed and rest will be expected to be done at the end of the month.Production in the current season has increased 30 to 40 per cent more than last year.
The impact of the trade war between America and China will also be reflected in Mentha Oil prices.China and the US are big importers of Indian Mentha Oil This time exports of trade between the two countries will be less.Prices also have seen pressure earlier amid expectations of higher acreage under mint in 2019 due to lucrative prices throughout last year. Export demand for oil in the global market is likely to be improved due to recovery in the 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 1270.1-1331.1.
--Mentha Oil spot at Sambhal closed at 1418.70 per 1kg. Spot prices was down by Rs.10.30/-.
--Mentha Oil dropped as spot markets are witnessed low demand amid improving supply in major physical centres of U.P.
--Almost 50% of harvesting is completed and rest will be expected to be done at the end of the month.
--Production in the current season has increased 30 to 40 per cent more than last year.
Courtesy: Kedia Commodities