Technically Mentha Oil market is under fresh selling as market has witnessed gain in open interest by 2.99% to settled at 483 while prices down 25.7 rupees.
Now MCX Mentha Oil is getting support at 1154.4 and below same could see a test of 1146.2 levels, and resistance is now likely to be seen at 1176.4, a move above could see prices testing 1190.2.
Mentha Oil yesterday settled down by 2.16% at 1162.6 as sentiments are likely to become bearish with waning of seasonal demand at the fag-end of the winter season. In the major growing regions, the sowing of this mint is going on & weather will play a major role in deciding the crop’s fate.
Also pressure seen as worries over China's coronavirus’ impact on Menthol demand continued to weigh on prices. The death toll in China climbed above 1,000, as the WHO cautioned that the spread of cases outside of China could be "the spark that becomes a bigger fire" and said the human race must not let the epidemic get out of control.
Hubei province, the epicentre out the outbreak, reported 103 deaths on Monday - the most in any single day - after 91 deaths on Sunday. But the 2,097 new cases was down from the previous day, when there were 2,618. At present, most of the Chinese buyers have ordered the Indian exporter to stop the supply of their order. If other Chinese importers also do so, then the export of Indian menthol products will be affected.
In Chandausi and Sambhal, key spot markets in Uttar Pradesh, the spice oil was sold at 1,350 rupees per kg and 1,290 rupees, respectively, both down 10 rupees. However, a fall in inventories at exchange-accredited warehouses restricted the downside. Mentha oil stocks at MCX-accredited warehouses were at 84.3 tn as of Saturday, down from 110.2 tn from a week ago, exchange data showed.
--Mentha Oil trading range for the day is 1146.2-1190.2.
--In Shambal spot market, Mentha oil remains unchanged at by 0 Rupees to end at 1307.6 Rupees per 360 kgs.
--Mentha Oil dropped as sentiments are likely to become bearish with waning of seasonal demand.
--Sowing of mentha started in key area & weather will play a major role in deciding the crop’s fate.
--Mentha Oil stocks at MCX-accredited warehouses were at 84.3 tn as of Saturday, down from 110.2 tn.
Courtesy: Kedia Commodities