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Mentha Oil market under fresh buying; Support seen at 950
Commodity Online | July 17 2017
UPDATED 12:14:26 IST

MCX Cotton likely to trade in a range between 18147-18527

MCX CPO under long liquidation: Support seen at 537.8

NCDEX Ref.Soya oil likely to trade in a range between 672-678

Mentha Oil market under long liquidation; Support seen at 1165.8

MCX Aluminium likely to trade in a range between 135.1-143.1

Technically Mentha oil market is under fresh buying as market has witnessed gain in open interest by 6.76% to settled at 3094 while prices up 17.2 rupees.

Now MCX Mentha oil is getting support at 950 and below same could see a test of 939.5 level, And resistance is now likely to be seen at 967.5, a move above could see prices testing 974.5.

Mentha oil on MCX settled up 1.82% at 960.6 due to pick-up in demand in the domestic spot market. Further, tight stocks position on restricted supplies from major producing belts of Chandausi in Uttar Pradesh, too supported mentha oil prices.

Resumption of trade activity in the spot market after halting of rainfall is likely to render support to the market. The demand from local consuming industries and traders is moderate and stockists are waiting for prices to cool down. However, the expectation of 15% hike in production this year and favourable climatic conditions are creating pressure on the prices.

Stock positions of mentha in MCX accredited warehouses were around 7219 drums which is 48 drums more in comparison to previous day while in process were 3420 drums, which is 24 drums more against the previous day.

 Arrivals are moderate in the major spot markets of Uttar Pradesh. As per the sources, the local demand for mentha from the traders and domestic consuming industries has slightly improved in comparison to previous days.

Due to the improving Chinese economy, there is expectation of increase in export demand in coming days which is also giving support to the prices. The daily supply could rise to around 400 drums in the next two weeks.

Expectations of higher output in 2017 will further dampen the sentiment moving ahead. Mentha output this year is likely to rise by 10-12% to 36,000 tn, as weather remained largely conducive throughout the season.

Trading Ideas:
--Menthaoil trading range for the day is 939.5-974.5.
--Mentha oil spot at Sambhal closed at 1098.10 per 1kg. Spot prices were up by Rs.25.30/-.
--Mentha oil prices gains due to pick-up in demand in the domestic spot market.
-- Resumption of trade activity in the spot market after halting of rainfall is likely to render support to the market.
-- The demand from local consuming industries and traders is moderate and stockists are waiting for prices to cool down.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil 250 9200.00
Coconut Oil 0.1 17100.00
Arecanut 23 22500.00
Sugar NR 4670.00

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