Technically Mentha Oil market is under short covering as market has witnessed drop in open interest by 6.15% to settled at 122 while prices up 2.4 rupees.
Now MCX Mentha Oil is getting support at 942.9 and below same could see a test of 939 levels, and resistance is now likely to be seen at 950.8, a move above could see prices testing 954.8.
Mentha Oil yesterday settled up by 0.25% at 946.8 as prices are on attractive levels at this movement as prices fallen 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.
--Mentha Oil trading range for the day is 939-954.8.
--In Sambhal spot market, Mentha oil gained by 0.8 Rupees to end at 1052.9 Rupees per 360 kgs.
--Mentha Oil gains as prices are on attractive levels at this movement as prices fallen 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.
Courtesy: Kedia Commodities