MCX Mentha Oil under long liquidation; Support seen at 1371.6
Commodity Online | April 26 2019
UPDATED 10:20:34 IST

MCX Mentha Oil likely to move in a range of 1270.1-1331.1

MCX Aluminium may trade between 140.5-145.7 levels

MCX Nickel under long liquidation; Support seen at 988.2

MCX Zinc under fresh selling; Support seen at 188.7

MCX Copper under fresh buying; Support seen at 449.8

Technically Mentha Oil market is under long liquidation as market has witnessed drop in open interest by 0.25% to settled at 406 while prices down 3.5 rupees.

Now Mentha Oil is getting support at 1371.6 and below same could see a test of 1363 level, And resistance is now likely to be seen at 1389.4, a move above could see prices testing 1398.6.

Mentha Oil on MCX settled down by 0.25% at 1380.2 on production is expected to increase by 30-40 percent during the year 2019-20. Spot markets are witnessed slow demand amid low arrivals in major physical centres in Uttar Pradesh.

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.

Monsoon rains in India are expected to be below normal this year, the country’s only private weather forecasting agency said, dampening prospects of higher farm and economic growth in the $2.6 trillion economy. “The Pacific Ocean has become strongly warmer than average.

The model projections call for 80 percent chance of El Nino during March-May, dropping to 60 percent for June to August,” Jatin Singh, managing director of Skymet, told reporters.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 1603.60 per 1kg. Spot prices was down by Rs.2.60/-.

Trading Ideas:
--Mentha Oil trading range for the day is 1363-1398.6.
--Mentha Oil spot at Sambhal closed at 1603.60 per 1kg. Spot prices was down by Rs.2.60/-.
--Mentha Oil dropped on production is expected to increase by 30-40 percent during the year 2019-20.
--Spot markets are witnessed slow demand amid low arrivals in major physical centres in Uttar Pradesh.
--Prices also seen pressure earlier amid expectations of higher acreage under mint in 2019 due to lucrative prices throughout last year.

Courtesy: Kedia Commodities

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