MCX Mentha Oil under long liquidation; Support seen at 1365.4

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Technically Mentha market is under long liquidation as market has witnessed drop in by 21.77% to settled at 388 while prices down 31.9 rupees.

Now MCX Mentha Oil is getting support at 1365.4 and below same could see a of 1350.8 level, And resistance is now likely to be seen at 1405.8, a move above could see prices testing 1431.6. 

Mentha Oil on MCX settled down by 2.26% at 1380 on production is expected to increase by 30-40 percent during the year 2019-20.

Spot markets are witnessed slow demand amid low arrivals in major physical centres in Uttar Pradesh. Prices also seen pressure earlier amid expectations of higher acreage under mint in 2019 due to lucrative prices throughout last year.

Export demand of oil in global market is likely to be improved due to recovery in currency which is supportive for prices. Monsoon rains in are expected to be below normal this year, the country’s only private weather forecasting agency said, dampening prospects of higher farm and in the $2.6 trillion economy.

“The Pacific Ocean has become strongly warmer than average. The model projections call for 80 percent chance of El Nino during March-May, dropping to 60 percent for June to August,” Jatin Singh, managing director of Skymet, told reporters.

Mentha sowing may witness a huge jump this year because of high returns farmers experienced the whole of last year. Production of mentha oil is expected to rise to 48,000-50,000 tn in 2019 from 33,000-35,000 tn last year.

This year, sowing of the crop started towards the end of last month, a couple of weeks later than usual due to extended cold weather in all major growing regions. Mentha oil spot at Sambhal closed at 1557.00 per 1kg. Spot prices was down by Rs.20.10/-.

Trading Ideas:
–Mentha Oil trading range for the day is 1350.8-1431.6.
–Mentha Oil spot at Sambhal closed at 1557.00 per 1kg. Spot prices was down by Rs.20.10/-.
–Mentha Oil ended with losses on production is expected to increase by 30-40 percent during the year 2019-20.
–Spot markets are witnessed slow demand amid low arrivals in major physical centres in Uttar Pradesh.
–Prices also seen pressure earlier amid expectations of higher acreage under mint in 2019 due to lucrative prices throughout last year.

Courtesy: Kedia Commodities

Source: Commodityonline.com