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Technically Mentha Oil market is under fresh buying as market has witnessed gain in open interest by 4.12% to settled at 708 while prices up 9.8 rupees.
Now MCX Mentha Oil is getting support at 1588.6 and below same could see a test of 1574.4 level, And resistance is now likely to be seen at 1615.5, a move above could see prices testing 1628.2.
Mentha Oil on MCX settled up by 0.62% at 1602.8 tracking firmness in spot demand amid low supply. However, upside seen limited amid expectations of higher acreage under mint in 2019 due to lucrative prices throughout last year.
Export demand of oil and its derivatives 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 1739.50 per 1kg. Spot prices was down by Rs.0.70/-.
Trading Ideas:
–Mentha Oil trading range for the day is 1574.4-1628.2.
–Mentha Oil spot at Sambhal closed at 1739.50 per 1kg. Spot prices was down by Rs.0.70/-.
–Mentha Oil prices gained tracking firmness in spot demand amid low supply.
–However, upside seen limited 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
Courtesy: Kedia Commodities
Source: Commodityonline.com
