MCX Mentha Oil likely to move in a range of 994.3-995.3
Commodity Online | January 15 2021
UPDATED 10:50:16 IST

NCDEX Jeera under fresh selling; Resistance seen at 14100

NCDEX Turmeric under long liquidation; Support seen at 8778

NCDEX Mustard Seed under fresh selling; Resistance seen at 5416

MCX Crude Palm Oil under short covering; Support seen at 1036.6

NCDEX Ref. Soya Oil under short covering; Resistance seen at 1178

Technically Mentha Oil market is under short covering as market has witnessed drop in open interest by 0.9% to settled at 110 while prices up 1.3 rupees.

Now MCX Mentha Oil is getting support at 994.6 and below same could see a test of 994.3 levels, and resistance is now likely to be seen at 995.1, a move above could see prices testing 995.3.

Mentha Oil yesterday settled up by 0.13% at 994.8 as industrial demand recovered after announcement of unlock just ahead of festivals. The COVID-19 outbreak has had a huge impact on the worldwide economy, and has posed a similar influence on the aroma chemicals market.

The market has been faced with the lack of migrant labor, supply chain disruptions, shutdown of manufacturing activities, to name a few. Support also seen on the expectation that India’s fragrance industry which had been slow, now slowly gaining the positive momentum post the COVID unlock down.

Headed towards a new decade, the fragrance industry has received a much needed boost with the acceptance of trendy dhoop sticks and dhoop cones which has seen an increased 20% demand day by day.

The global aroma chemicals market is likely to record a steady CAGR of about 4% during the assessment period of 2020-2030. Growing demand for aroma chemicals in the food & beverage and fragrance industry will underpin the growth of the market.

Strict regulations in relation to artificial flavours are complimenting to the expansion of natural aroma chemicals in the food sector. Out of India's total mentha oil exports, nearly 55% goes to China while 16% goes to the US and around 5% goes to Singapore. In Sambhal spot market, Mentha oil dropped by 1.9 Rupees to end at 1120.5 Rupees per 360 kgs.

Trading Ideas:
--Mentha Oil trading range for the day is 994.3-995.3.
--In Sambhal spot market, Mentha oil dropped  by -1.9 Rupees to end at 1120.5 Rupees per 360 kgs.
--Mentha Oil prices gained as industrial demand recovered after announcement of unlock just ahead of festivals.
--The COVID-19 outbreak has had a huge impact on the worldwide economy, and has posed a similar influence on the aroma chemicals market.
--The global aroma chemicals market is likely to record a steady CAGR of about 4% during the assessment period of 2020-2030.

Courtesy: Kedia Commodities
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