MCX Mentha Oil under fresh selling; Support seen at 1247.3
Commodity Online | June 25 2019
UPDATED 10:20:28 IST

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MCX Mentha Oil likely to move in a range of 1249.1-1345.9

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Technically Mentha Oil market is under fresh selling as market has witnessed gain in open interest by 43.12% to settled at 634 while prices down 8.5 rupees.

Now MCX Mentha Oil is getting support at 1247.3 and below same could see a test of 1233.4 level, And resistance is now likely to be seen at 1284.8, a move above could see prices testing 1308.4.

Mentha Oil on MCX settled down by 0.67% at 1261.1 due to delay in monsoon, there has been an increase in the arrival of mentha. Spot markets are witnessed low demand amid improve supply in major physical centres of U.P. Almost 50% harvesting is completed and rest will expected to be done in the end of the month.

Actually, production in the current season has increased 30 to 40 percent more than last year. The impact of trade war between America and China will also be reflected on Mentha Oil prices. China and US are big importers of Indian Mentha Oil This time exports of trade between the two countries will be less.

Prices also seen pressure earlier amid expectations of higher acreage under mint in 2019 due to lucrative prices throughout last year. Export demand of oil in global market is likely to be improved due to recovery in currency which is supportive for prices.

Mentha sowing may witness a huge jump this year because of high returns farmers experienced the whole of last year. Production of mentha oil is expected to rise to 48,000-50,000 tn in 2019 from 33,000-35,000 tn last year.

This year, sowing of the crop started towards the end of last month, a couple of weeks later than usual due to extended cold weather in all major growing regions.  Mentha oil spot at Sambhal closed at 1353.90 per 1kg. Spot prices was down by Rs.16.30/-.

Trading Ideas:
--Mentha Oil trading range for the day is 1233.4-1308.4.
--Mentha Oil spot at Sambhal closed at 1353.90 per 1kg. Spot prices was down by Rs.16.30/-.
--Mentha Oil dropped due to delay in monsoon, there has been an increase in the arrival of mentha.
--Spot markets are witnessed low demand amid improve supply in major physical centres of U.P.
--Almost 50% harvesting is completed and rest will expected to be done in the end of the month.

Courtesy: Kedia Commodities

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