MCX Mentha Oil likely to move in a range of 1193.6-1222.8

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Technically Mentha Oil market is under short covering as market has witnessed drop in by 6.07% to settled at 1115 while prices up 8.3 rupees.

Now Mentha Oil is getting support at 1202.8 and below same could see a of 1193.6 levels, and resistance is now to be seen at 1217.4, a move above could see prices testing 1222.8. 

Mentha Oil on settled up by 0.69% at 1212 as low level buying seen as demand season starts. As per Central Institute of Medicinal and Aromatic Plants (CIMAP) mentha sowing touched 3 lakh ha. Sowing witnessed a huge jump this year because of high returns farmers experienced the whole of last year.

The surge in output is likely due to buoyancy in planting intentions, not only in the traditional pockets of Uttar Pradesh and Bihar in recent days, but also in Madhya Pradesh. Due to improving exports prospects, estimates for ending stocks has been reduced even lower than previous year. Export demand of oil in global market is likely to be improved due to recovery in currency which is supportive for prices.

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Future demand of mentha oil is expected to rise as Colgate-Palmolive sees a rise in Sales by 4%; recorded net sales of . 1,075.9 Crore for Q1. Official data on mentha, with respect to sowing or production and export, is not available as trade in the commodity is tightly controlled by a few. This season, the area under mint is expected to be 250,000-265,000 ha. Mentha oil spot at Sambhal closed at 1354.30 per 1kg. Spot prices was remain unchanged by .0.00/-.

Trading Ideas:
–Mentha Oil trading for the day is .
–Mentha Oil spot at Sambhal closed at 1354.30 per 1kg. Spot prices was remain unchanged by Rs.0.00/-.
–Mentha Oil settled up as low level buying seen as demand season starts.
–Due to improving exports prospects, estimates for ending stocks has been reduced even lower than previous year.
–The surge in output is likely due to buoyancy in planting intentions, not only in the traditional pockets of Uttar Pradesh and Bihar in recent days.

Courtesy: Kedia Commodities

Source: Comodity Online

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