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Mentha Oil market under short covering; Support seen at 1685.7
Commodity Online | November 22 2017
UPDATED 12:09:52 IST

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Zinc likely to trade in a range between 201.2-207 levels

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Fresh buying seen in MCX Cardamom; Resistance seen at 1086

Fresh selling seen in NCDEX Jeera ; Support seen at 21240

Technically Mentha Oil market is under short covering as market has witnessed drop in open interest by 24.49% to settled at 971 while prices up 26.6 rupees.

Now MCX Mentha Oil is getting support at 1685.7 and below same could see a test of 1655.3 levels and resistance is now likely to be seen at 1751.7, a move above could see prices testing 1787.3.

Mentha oil on MCX settled up by 1.57% at 1716 as 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.

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.

According to the market sources, traders have raised their holdings on the back of pick-up in spot demand from consuming industries. Tight stock positions due to restricted arrivals from the major producing belts of Chandausi is also giving support to the mentha prices.

With the onset of winter the seasonal and export demand of mentha is improving which is also one of the reasons for rise in prices. Stock positions of mentha in MCX accredited warehouses were around 8537 drums which is 192 drums less in comparison to the previous day, while in process were 408 drums which is same against the previous day.

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. Mentha oil spot at Sambhal closed at 1917.00 per 1kg. Spot prices were up by Rs.11.40/-.

Trading Ideas:
--Mentha Oil trading range for the day is 1655.3-1787.3.
--Mentha oil spot at Sambhal closed at 1917.00 per 1kg. Spot prices were up by Rs.11.40/-.
--Mentha oil prices recorded gains in spot markets on dwindling supplies due to fall in output.
--According to the market sources, traders have raised their holdings on the back of pick-up in spot demand from consuming industries.
--Tight stock positions due to restricted arrivals from the major producing belts of Chandausi is also giving support to the mentha prices.

Courtesy: Kedia Commodities

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