Technically Mentha Oil market is under short covering as market has witnessed drop in open interest by 26.03% to settled at 1728 while prices up 65.9 rupees.
Now Mentha oil is getting support at 1625.8 and below same could see a test of 1537.9 levels and resistance is now likely to be seen at 1757.6, a move above could see prices testing 1801.5.
Mentha oil on MCX settled up by 4% at 1713.6 in spot markets on dwindling supplies due to fall in output. Daily arrivals across Uttar Pradesh fell to nearly 150 drums only. MCX announced imposition of 20% special margin on buyers on all contracts of mentha oil from Monday.
Prices also seen supported due to sharp fall in output and higher demand for domestic industries and exports. This year mentha oil output is projected at 25,000-30,000 ton as against 35,000 ton in the previous year due to fall in acreage.
Mentha stood at 175,000 hectare down 20% compared to last year. India exported 5,365 ton mint products during April-June 2017 up from 5,259 ton a year ago, Spices Board data showed. In value term, India's mint export recorded a growth of 8% to Rs 113.1 million, data showed.
Stock positions of mentha oil in Multi-Commodity Exchange (MCX) accredited warehouses were around 9,472 drums which is 24 drums less compared to previous day's stock, while in process were 456 drums, which is unchanged against the previous day. Meanwhile, export demand for mentha oil is expected to emerge from the major exporting countries.
Demand for mentha oil is expected to boost mainly from medicines, health products, cosmetics as well as food and beverages sector. Mentha oil spot at Sambhal closed at 1842.80 per 1kg. Spot prices was up by Rs.130.20/-.
--Mentha Oil trading range for the day is 1537.9-1801.5.
--Mentha Oil spot at Sambhal closed at 1842.80 per 1kg. Spot prices were up by Rs.130.20/-.
--Mentha oil prices recorded gains in spot markets on dwindling supplies due to fall in output.
--Prices also seen supported due to sharp fall in output and higher demand for domestic industries and exports.
--Daily arrivals across Uttar Pradesh fell to nearly 150 drums only.
Courtesy: Kedia Commodities