Technically Mentha Oil market is under fresh selling as market has witnessed gain in open interest by 51.97% to settled at 848 while prices down 4.2 rupees.
Now MCX Mentha Oil is getting support at 950 and below same could see a test of 943.1 levels, and resistance is now likely to be seen at 966.4, a move above could see prices testing 975.9.
Mentha Oil yesterday settled down by 0.44% at 956.9 as average yield in Barabanki is improved by 5-6 kgs per acre due to better weather.
Support also seen due to the rotting of the crop due to stagnant water in the field. The past few weeks have been painful as heavy rains in the pre-monsoon season have damaged the mentha crop which was ready for harvesting.
Due to drowning in the water, the rows have started to wither. With the harvesting of the crop, oil extraction work has also started. However upside seen limited as arrivals likely to increase due to favourable weather conditions. Daily arrivals should gradually pick up to 400-500 drums in next 7-10 days. Last week, prices rallied.
The Lucknow-based Central Institute of Medicinal and Aromatic Plants estimates that this adverse effect of rains on the crop is expected to reduce production by 30% in the last two weeks. The crop is prone to rain because the leaves of the crop start falling due to waterlogging in the field.
Most of the farmers have planted Mentha crops and this rain is not less than acid for 50 percent of Mentha crop. In Sambhal spot market, Mentha oil dropped by 17.4 Rupees to end at 1058.7 Rupees per 360 kgs.
--Mentha Oil trading range for the day is 943.1-975.9.
--In Sambhal spot market, Mentha oil dropped by -17.4 Rupees to end at 1058.7 Rupees per 360 kgs.
--Mentha Oil prices dropped as average yield in Barabanki improved.
--Prices gained in recent sessions due to the rotting of the crop due to stagnant water in the field.
--The past few weeks have been painful as heavy rains in the pre-monsoon season have damaged the mentha crop which was ready for harvesting.
Courtesy: Kedia Commodities