MCX Mentha Oil under fresh selling; Support seen at 1570.1

Technically Mentha Oil market is under fresh selling as market has witnessed gain in open interest by 1.18% to settled at 941 while prices down 0.9 rupees.

Now MCX Mentha Oil is getting support at 1570.1 and below same could see a test of 1558.8 level, And resistance is now likely to be seen at 1588.8, a move above could see prices testing 1596.2.

Mentha Oil on MCX settled flat due to low demand at major physical centers. Pressure also seen 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. Farmers have started preparing to harvest mentha this time in many villages of Saheb Tehsil. Actually, this time demand was high in the market and availability of Mentha Oil was low. Crop in India also decreased.

In such a situation, there was a demand for Mentha Oil in China too. Farmers and businessmen are hoping that this time the harvest of mentha will be more. Because for a few years the price of Mentha was very low. Since last few years the number has been steady to lower.

But in response to decent appreciation in last years’ prices, farmers sowing improved resulting in rise in production prospects. Therefore, the total availability of oil will rise this year. As of now traders expect a 20-25% rise in sowing versus last year.

It should be noted that this year’s production expectation of 38500- 39000 MT remains slightly above the average production of 36,968 MT productions seen in between 2013- 2018. Mentha oil spot at Sambhal closed at 1694.30 per 1kg. Spot prices was down by Rs.30.80/-.

Trading Ideas:
–Mentha Oil trading range for the day is 1558.8-1596.2.
–Mentha Oil spot at Sambhal closed at 1694.30 per 1kg. Spot prices was down by Rs.30.80/-.
–Mentha Oil settled flat due to low demand at major physical centers.
–Pressure also seen amid expectations of higher acreage under mint in 2019 due to lucrative prices throughout last year.
–Farmers have started preparing to harvest mentha this time in many villages of Saheb Tehsil.

Courtesy: Kedia Commodities