MCX Mentha Oil market under long liquidation
Commodity Online | September 20 2016
UPDATED 14:38:33 IST

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NCDEX Jeera under fresh selling; Resistance seen at 14140

NCDEX Turmeric under fresh selling; Support seen at 5844

MCX Mentha Oil likely to move in a range of 935.3-958.9

Mentha Oil on MCX settled down by -0.85% at 890.6 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 update 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 Rampur market sources reported arrivals at 6 Drums (1-drum=180kg), unchanged as compared to previous day’s arrival. At Bareilly market arrivals were reported at 1 Drums(1-drum-180kg), steady as against previous day’s arrival. At Barabanki market arrivals were reported at 400 Drums (1-drum-180kg), unchanged as compared to previous day’s arrival.

Mentha Oil spot at Sambhal closed at 1025.80 per 1kg. Spot prices is down by Rs.-5.30/-.Technically market is under long liquidation as market has witnessed drop in open interest by -3.16% to settled at 4628 while prices down -7.6 rupee, now Mentha Oil is getting support at 886.9 and below same could see a test of 883.1 level, and resistance is now likely to be seen at 894.8, a move above could see prices testing 898.9.

Trading Ideas:
--Mentha Oil trading range for the day is 883.1-898.9.
--Mentha Oil spot at Sambhal closed at 1025.80 per 1kg. Spot prices is down by Rs.-5.30/-.
--Mentha Oil prices 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.
--India’s mentha oil output was estimated to remain lower this year from 32,000 tonnes produced during last year.

Courtesy: Kedia Commodities