MCX Mentha Oil likely to move in a range of 968.6-1006.4
Commodity Online | June 30 2020
UPDATED 10:50:46 IST

NCDEX Chana under long liquidation; Support seen at 4100

MCX Mentha Oil likely to move in a range of 978.4-1005.4

MCX Cotton under short covering; Support seen at 15870

MCX Aluminium may trade between 136-137.8 levels

NCDEX Jeera under short covering; Resistance seen at 13820

Technically Mentha Oil market is under fresh buying as market has witnessed gain in open interest by 11.76% to settled at 114 while prices up 1.5 rupees.

Now MCX Mentha Oil is getting support at 979.6 and below same could see a test of 968.6 levels, and resistance is now likely to be seen at 998.5, a move above could see prices testing 1006.4.

Mentha Oil yesterday settled up by 0.15% at 990.5 recovered on low level buying after prices dropped as production this year is up nearly by 40% compare with last year, seen at a record high of 52,000-56,000 tn this year.

There were expectations of higher area under cultivation for crop year 2020-21. After a week's delay due to heavy rainfall, oil from new mentha crop has started arriving at the key wholesale market of Barabanki in Uttar Pradesh, traders said.

So far, arrivals of the spice oil are at 5-10 drums. New mint crop is being harvested in Bareilly, Sitapur and Konch districts. Demand is there for new mentha crop but it will take some time for bulk arrivals to hit markets.

New arrivals are likely to pick up during the first week of June. In the first week of June, arrivals are likely to touch 100 drums per day.

During the peak arrival season after mid-June, 400-500 drums will collectively arrive daily in the markets of Chandausi, Sambhal and Barabanki in Uttar Pradesh.

Prices of the spice oil are also likely to remain on the downside as production is seen at a record high of 55,000-60,000 tn this year, up nearly 50%. The yield of mentha is expected to be high this time too, due to this, traders are not taking fresh positions in mentha.

Trading Ideas:
--Mentha Oil trading range for the day is 968.6-1006.4.
--In Shambal spot market, Mentha oil remains unchanged at by 0 Rupees to end at 1081.9 Rupees per 360 kgs.
--Mentha Oil prices recovered on low level buying after prices dropped as production this year is up nearly by 40%.
--There were expectations of higher area under cultivation for crop year 2020-21.
--The yield of mentha is expected to be high this time too, due to this, traders are not taking fresh positions in mentha.

Courtesy: Kedia Commodities