Technically Mentha Oil market is under fresh buying as market has witnessed gain in open interest by 2.34% to settled at 1183 while prices up 10 rupees.
Mow MCX Mentha Oil is getting support at 1311.4 and below same could see a test of 1299.4 level, and resistance is now likely to be seen at 1330.7, a move above could see prices testing 1338.
Mentha Oil on MCX settled up 0.76% at 1323.3 as low level buying seen as 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 1299.4-1338.
--Mentha oil spot at Sambhal closed at 1414.00 per 1kg. Spot prices was up by Rs.15.10/-.
--Mentha Oil gained as low level buying seen as demand season starts in August.
--There were estimations of a 20-25% rise in sowing in 2019 versus last year.
--Due to improving exports prospects, estimates for ending stocks has been reduced even lower than previous year.
Courtesy: Kedia Commodities