MCX Mentha Oil market under long liquidation; Resistance seen at 892.7
Commodity Online | September 21 2016
UPDATED 11:43:16 IST

MCX Mentha Oil likely to move in a range of 944-965.6

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MCX Nickel likely to move in a range of 1043.9-1081.7

MCX Copper under fresh buying; Support seen at 520

MCX Zinc under long liquidation; Resistance seen at 192.3

Mentha Oil on MCX settled down by -0.81% at 883.4 driven by sluggish demand from consuming industries at the spot market. Besides, ample stocks position on higher supplies from producing regions also weighed on mentha oil prices. Overall sentiments dropped as export and domestic demand are not picking up also as per last months udpate exports have registered a decline in volume terms.

China and Japan have reduced their buying quantity in the recent past due to the economic slowdown had impacted Mint product's exports which declined substantially from the export basket by 18% in terms of volume and 4% in terms of value year-on-year. Exports of mint products stood at 21,150 tonne in FY16 valued at R2,577.59 crore against 25,750 tonne valued at R2,689.25 crore in FY15. Mentha oil prices have fallen due to the fund crisis in the market and lower Chinese demand for Indian Mentha oil. Initially, India’s mentha oil output was estimated to remain lower this year from 32,000 tonnes produced during last year.

At Sambhal market estimated market supply was at 150 Drums(1-drum=180kg), steady as against previous day’s arrival. At Rampur market arrivals were reported at 6 Drums(1-drum=180kg), steady as against previous day’s arrival. At Barabanki market arrivals were reported at 350 Drums(1-drum-180kg), lower by 50 Drums(1-drum-180kg) as compared to previous day. At Chandausi market arrivals were reported at 20 Drums(1-drum-180kg), up by 15 Drums(1-drum-180kg) from previous day’s arrivals.

Technically market is under long liquidation as market has witnessed drop in open interest by -0.15% to settled at 4621 while prices down -7.2 rupee, now Mentha Oil is getting support at 877.2 and below same could see a test of 871.1 level, and resistance is now likely to be seen at 892.7, a move above could see prices testing 902.1.

Trading Ideas:
--Mentha Oil trading range for the day is 871.1-902.1.
--Mentha Oil spot at Sambhal closed at 1021.50 per 1kg. Spot prices is down by Rs.-4.30/-.
--Mentha Oil dropped driven by sluggish demand from consuming industries at the spot market.
--Besides, ample stocks position on higher supplies from producing regions also weighed on mentha oil prices.
--At Chandausi market arrivals were reported at 20 Drums(1-drum-180kg), up by 15 Drums(1-drum-180kg) from previous day’s arrivals.

Courtesy: Kedia Commodities

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