Technically Mentha Oil market is under short covering as market has witnessed drop in open interest by 4.41% to settled at 954 while prices up 0.5 rupees.
Now Mentha Oil is getting support at 1406.4 and below same could see a test of 1375.7 level, And resistance is now likely to be seen at 1461.4, a move above could see prices testing 1485.7.
Mentha Oil on MCX settled up by 0.03% at 1437 tracking an uptick in demand from domestic physical market. Further, a fall in supply from Chandausi also fuelled the uptrend. Stock positions of mentha in MCX accredited warehouses were around 3329 drums which is 228 drums less in comparison to previous day.
As per the sources domestic demand has slightly improved from the major domestic consuming industries. However, there is no positive development from the export front. Also as winter is about to end soon, thus the seasonal demand for mentha will also decline gradually.
According to the information received from traders, there is currently not much demand for mentha from the domestic consuming industries as well as stockists. From export front, there is no expectation of any positive development in the recent times.
Due to the increased production and usage of synthetic mentha in the recent years, demand for natural mentha has decreased. As per the reports the global demand of essential oil will increase in the coming years.
This will boost mentha oil demand, mainly from medicines, health products, cosmetics as well as food and beverages.Mentha oil spot at Sambhal closed at 1674.40 per 1kg. Spot prices was up by Rs.1.10/-.
-- Mentha Oil trading range for the day is 1375.7-1485.7.
--Mentha oil spot at Sambhal closed at 1674.40 per 1kg. Spot prices was up by Rs.1.10/-.
--Mentha oil prices ended with gains tracking an uptick in demand from domestic physical market.
--Stock positions of mentha in MCX accredited warehouses were around 3329 drums which is 228 drums less in comparison to previous day.
-- In recent years the production and consumption of synthetic mentha has increased which has impacted the demand of natural mentha.
Courtesy: Kedia Commodities