Mentha Oil market under short covering
Commodity Online | August 16 2016
UPDATED 16:02:28 IST

MCX Mentha Oil under fresh buying; Resistance seen at 1307.9

MCX Aluminium may trade between 131.9-134.5 levels

MCX Nickel likely to move in a range of 997-1036.8

MCX Zinc under short covering; Resistance seen at 183.8

MCX Copper may trade between 437.4-445.2 levels

Mentha Oil edged higher driven by rising demand from consuming industries at the spot market. Besides, tight stocks position following restricted arrivals from major producing belts of Chandausi in Uttar Pradesh also added support to mentha oil prices uptrend. Sudden spurt in the prices of mentha oil would raise cost of production for consumers industries which may prompt producers to revise prices of their final product upwards. Interestingly, however, mentha oil being a small component of entire basket of raw materials, its consumer industries might absorb price rise for some time.

Initially, India’s mentha oil output was estimated to remain lower this year from 32,000 tonnes produced during last year. But, rainfalls later improved overall scenario that got worsened with scorching heat waves in May. Hence, overall mentha oil output for 2016-17 is now revised upwards at 34,000 tonnes. Mint product exports have 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 Rs. 2,577.59 crore against 25,750 tonne valued at R2,689.25 crore in FY15. At Sambhal market total arrivals are at 150 Drums(1-drum=180kg), steady as against previous day’s arrival. At Barabanki market arrivals were reported at 400 Drums(1-drum-180kg), steady as against previous day’s arrival.

At Bareilly market sources reported arrivals at 3 Drums(1-drum-180kg), higher by 2 Drums(1-drum-180kg) as against previous day. Technically market is under short covering as market has witnessed drop in open interest by -4.17% to settled at 5443 while prices up 0.5 rupee, now Mentha Oil is getting support at 902.3 and below same could see a test of 898.6 level, and resistance is now likely to be seen at 911.1, a move above could see prices testing 916.2.

Trading Ideas:
Mentha Oil trading range for the day is 898.6-916.2.
Mentha Oil spot at Sambhal closed at 1047.80 per 1kg. Spot prices is up by Rs.3.90/-.
Mentha Oil edged higher driven by rising demand from consuming industries at the spot market.
Besides, tight stocks position following restricted arrivals from major producing belts of Chandausi in Uttar Pradesh also added support.
Mint product exports have declined substantially from the export basket by 18% in terms of volume and 4% in terms of value year-on-year.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil 1 9050.00
Coconut Oil 0.1 16900.00
Arecanut 25 15000.00
Sugar 0.5 4000.00

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