Mentha Oil market under long liquidation: Support seen at 880.5
Commodity Online | September 02 2016
UPDATED 11:42:41 IST

MCX Silver under fresh buying; Resistance seen at 71470

MCX Gold under fresh buying; Support seen at 53866

MCX Mentha Oil likely to move in a range of 930.1-963.1

MCX Aluminium may trade between 138.9-147.9 levels

MCX Nickel likely to move in a range of 1023.1-1083.9

Mentha Oil on MCX settled down by -1.83% at 888.7 due to profit booking amid sluggish physical demand from major consuming industries in the domestic spot market. Overall sentiments dropped as export and domestic demand are not picking up also as per last months udpate exports have registered a decline in volume terms.

China and Japan have reduced their buying quantity in the recent past due to the economic slowdown had impacted Mint product's exports which declined substantially from the export basket by 18% in terms of volume and 4% in terms of value year-on-year. Exports of mint products stood at 21,150 tonne in FY16 valued at R2,577.59 crore against 25,750 tonne valued at R2,689.25 crore in FY15. The Spices Board said that the bulk of the exports is in the form of crystallised menthol. Mentha oil prices have fallen almost more than 11% since last 1month from 992.80 level to test 880 level this week due to the fund crisis in the market and lower Chinese demand for Indian Mentha oil. Initially, India’s mentha oil output was estimated to remain lower this year from 32,000 tonnes produced during last year.

At Rampur market estimated market supply was at 5 Drums(1-drum=180kg), lower by 1 Drums(1-drum=180kg) as compared to previous day. At Sambhal market  arrivals were reported at 150 Drums(1-drum=180kg), steady as against previous day’s arrival. Mentha oil spot at Sambhal closed at 1030.60 per 1kg. Spot prices is down by Rs.-7.20/-.Technically market is under long liquidation as market has witnessed drop in open interest by -0.94% to settled at 5262 while prices down -16.6 rupee, now Menthaoil is getting support at 880.5 and below same could see a test of 872.2 level, and resistance is now likely to be seen at 903.3, a move above could see prices testing 917.8.

Trading Ideas:
--Mentha Oil trading range for the day is 872.2-917.8.
--Mentha Oil spot at Sambhal closed at 1030.60 per 1kg. Spot prices is down by Rs.-7.20/-.
--Mentha Oil dropped due to profit booking amid sluggish physical demand from major consuming industries in the domestic spot market.
--China and Japan have reduced their buying quantity in the recent past due to the economic slowdown had impacted Mint product's exports.
--Exports of mint products stood at 21,150 tonne in FY16 valued at R2,577.59 crore against 25,750 tonne.

Courtesy: Kedia Commodities