MCX Mentha Oil likely to move in a range of 918.7-938.9
Commodity Online | July 23 2020
UPDATED 10:50:29 IST

NCDEX Chana under fresh buying; Support seen at 5056

MCX Cotton under fresh buying; Support seen at 17950

NCDEX Jeera under fresh selling; Resistance seen at 14140

NCDEX Turmeric under fresh selling; Support seen at 5844

MCX Mentha Oil likely to move in a range of 935.3-958.9

Technically Mentha Oil market is under long liquidation as market has witnessed drop in open interest by 21.14% to settled at 97 while prices down 13.4 rupees.

Now MCX Mentha Oil is getting support at 922.5 and below same could see a test of 918.7 levels, and resistance is now likely to be seen at 932.6, a move above could see prices testing 938.9.

Mentha Oil yesterday settled down by 1.43% at 926.4 as prices are on attractive levels at this movement as prices are fallen nearly 25% since the start of the year.

Unlock down will support demand for industry as Mentha oil is most used in pharma industry, cosmetics industry, FMCG sector as well as confectionery products. Due to prevailing low prices for natural mentha companies using synthetic menthol will rely on natural mentha this year.

New demand for Mentha products can be seen as produce are also used in pain relieving medication, cough syrup, soap and sanitizer. These days, due to the increase of pests on Mentha plants, the possibility of oil shortage has increased.

In recent session prices remained under pressure as production this year is up by 40% compare with last year. Sharp drop seen suddenly as arrival has increased, farmers are constantly bringing their crops to the mandis as this year farmers had a bumper yield.

Mentha crop has been cultivated on a large scale due to reduced production of kharif crop. There were expectations of higher area under cultivation for crop year 2020-21. According to market sources, the yields could be between 52,000-56,000 tonnes this year, up by 40 per cent.

Trading Ideas:
--Mentha Oil trading range for the day is 918.7-938.9.
--In Sambhal spot market, Mentha oil remains unchanged at by 0 Rupees to end at 1034 Rupees per 360 kgs.
--Menthaoil gains as prices are on attractive levels at this movement as prices are fallen nearly 25% since the start of the year.
--These days, due to the increase of pests on Mentha plants, the possibility of oil shortage has increased.
--Unlock down will support demand for industry as Mentha oil is most used in pharma, cosmetics, FMCG sector as well as confectionery products.

Courtesy: Kedia Commodities