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Mentha Oil market under short covering; Resistance seen at 1241
Commodity Online | March 13 2018
UPDATED 12:36:52 IST

MCX Nickel under short covering; Resistance seen at 905.3

MCX Aluminium likely to move in a range of 143.8-149

MCX Mentha Oil under short covering; Support seen at 1652.3

MCX Cotton under long liquidation

MCX Cardamom under fresh buying; Resistance seen at 1419.8

Technically Mentha Oil market is under short covering as market has witnessed drop in open interest by 2.53% to settled at 1039 while prices up 13.6 rupees.

Now MCX Mentha Oil is getting support at 1212 and below same could see a test of 1195.5 level, And resistance is now likely to be seen at 1241, a move above could see prices testing 1253.5.

Mentha Oil on MCX settled up by 1.12% at 1228.5 amid pick-up in demand from consuming industries in the domestic spot market. Further, restricted supplies from the major producing belts of Chandausi in Uttar Pradesh too added support to mentha oil prices.

Stock positions of mentha in MCX accredited warehouses were around 2644 drums which is same in comparison to previous day. Arrival is moderate in the major spot markets of Uttar Pradesh. 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 expectation of not 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.

The presence and growth of usage of synthetic mentha is also hampering the demand and ultimately the price movement of mentha. As per sources, India contributes around 80% to the total global mentha oil production.

Total global production stood at around 48,000 tonnes, out of which India produces between 30,000-40,000 tonnes. According to estimates, mentha oil production in India for crop year 2016-17 will be around 38,000 tonnes.

As per the data, the global demand of essential oil will increase in the coming years. Mentha oil spot at Sambhal closed at 1418.70 per 1kg. Spot prices was down by Rs.-15.00/-.

Trading Ideas:
--Mentha Oil trading range for the day is 1195.5-1253.5.
--Mentha Oil spot at Sambhal closed at 1418.70 per 1kg. Spot prices was down by Rs.-15.00/-.
--Mentha Oil prices gained amid pick-up in demand from consuming industries in the domestic spot market.
--Further, restricted supplies from the major producing belts of Chandausi in Uttar Pradesh too added support to mentha oil prices.
--Stock positions of mentha in MCX accredited warehouses were around 2644 drums which is same in comparison to previous day.

Courtesy: Kedia Commodities

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