MCX Mentha Oil likely to move in a range of 947.5-977.1
Commodity Online | September 15 2021
UPDATED 10:50:35 IST

MCX Mentha Oil likely to move in a range of 897.1-928.9

MCX Aluminium may trade between 223.6-232.6 levels

MCX Nickel likely to move in a range of 1391.3-1479.7

MCX Zinc under short covering; Resistance seen at 258.8

MCX Copper under long liquidation; Support seen at 683.8

Technically Mentha Oil market is under long liquidation as market has witnessed drop in open interest by 3.71% to settled at 1169 while prices down 11.9 rupees.

Now MCX Mentha Oil is getting support at 953.8 and below same could see a test of 947.5 levels, and resistance is now likely to be seen at 968.6, a move above could see prices testing 977.1.

Mentha Oil yesterday settled down by 1.22% at 960 on profit booking after prices gained as India saw a slight decline in fresh Covid cases, with unlockdown ahead of festival season helped mentha prices to hold support as mentha is used in medicine, beauty products, toothpaste as well as confectionery products.

Prices got support in last few weeks as due to crop failure and low recovery of oil, availability of Mentha oil will be low and demand from industries are expected to improve ahead of winter season.

Speculation are also high that production this year will be lower as compare with last year because of two important factors. Firstly damages due to rain in key area and secondly farmers for the last 2 years where sowing mentha but due to not getting much profit at intervals there had been shift to other crops also.

There is a possibility of an average reduction of 24-25 percent in the production of the total summer crop, the farmers said that the mentha crop which used to have a recovery of 8 to 10 kg oil per hectare, is now coming out only 6 kg. In Sambhal spot market, Mentha oil gained by 28.6 Rupees to end at 1070.1 Rupees per 360 kgs.

Trading Ideas:
--Mentha Oil trading range for the day is 947.5-977.1.
--In Sambhal spot market, Mentha oil gained  by 28.6 Rupees to end at 1070.1 Rupees per 360 kgs.
--Mentha Oil dropped on profit booking after prices gained as India saw a slight decline in fresh Covid cases, with unlockdown ahead of festival season.
--Prices got support in last few weeks due to crop failure and low recovery of oil.
--Availability of Mentha oil will be low and demand from industries are expected to improve.

Courtesy: Kedia Commodities

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