Technically Mentha Oil market is under fresh buying as market has witnessed gain in open interest by 20.94% to settled at 1034 while prices up 3.3 rupees.
Now MCX Mentha Oil is getting support at 931.5 and below same could see a test of 925.8 levels, and resistance is now likely to be seen at 942.9, a move above could see prices testing 948.6.
Mentha Oil yesterday settled up by 0.35% at 937.3 on short covering after prices dropped after the news that US House Democrats have proposed a tax hike on tobacco and nicotine to help fund their $3.5 trillion spending plan.
The measure may increase current levies on cigarettes, cigars and roll-your-own and smokeless tobacco, according to a plan summary. They have also proposed new taxes on vaping products.
Pressure also seen after the news that the Food and Drug Administration has proposed a ban on menthol cigarettes, suggesting it may prompt 923,000 U.S. smokers to quit, according to one study.
Goldman Sachs covering the beverage and tobacco sectors, pointed to the potential federal menthol ban as another area of concern for retailers. This year US FDA announced it is taking steps to ban menthol as a characterizing flavor in cigarettes, and ban all characterizing flavors including menthol in cigars within the next year.
In Goldman Sachs’ Nicotine Nuggets survey, nearly 70 percent of retailers said they expected cigarette volume declines to accelerate in 2021. In Sambhal spot market, Mentha oil gained by 28.6 Rupees to end at 1042.2 Rupees per 360 kgs.
Trading Ideas:
–Mentha Oil trading range for the day is 925.8-948.6.
–In Sambhal spot market, Mentha oil gained by 28.6 Rupees to end at 1042.2 Rupees per 360 kgs.
–Mentha Oil gained on short covering after prices droppedafter the news that US House Democrats have proposed a tax hike on tobacco and nicotine.
–The measure may increase current levies on cigarettes, cigars and roll-your-own and smokeless tobacco, according to a plan summary.
–Goldman Sachs covering the beverage and tobacco sectors, pointed to the potential federal menthol ban as another area of concern for retailers.
Courtesy: Kedia Commodities
Source: Comodity Online
