Technically Mentha Oil market is under fresh buying as market has witnessed gain in open interest by 0.47% to settled at 1280 while prices up 0.2 rupees.
Now MCX Mentha Oil is getting support at 919.4 and below same could see a test of 917 levels, and resistance is now likely to be seen at 924.1, a move above could see prices testing 926.4.
Mentha Oil yesterday settled up by 0.02% at 921.9 as support seen after India saw a slight in fresh Covid cases, with unlockdown ahead of festival season.
Prices got support in last few weeks as due to crop failure and low recovery of oil, availability of Mentha oil will be low and demand from industries are expected to improve ahead of winter season. Speculation are also high that production this year will be lower as compare with last year because of two important factors.
Major physical market player expects demand to sluggish for next few week as cash crunch seen in spot market, while expectations are high about demand improvement ahead of winter season starts.
China is one of the biggest buyer for Indian Mentha, no much buying inquiry from China as mainland China and Hong Kong markets were shut. Speculation are also high that production this year will be lower as compare with last year because of two important factors.
Firstly damages due to rain in key area and secondly farmers for the last 2 years where sowing mentha but due to not getting much profit at intervals there had been shift to other crops also. In Sambhal spot market, Mentha oil dropped by -41 Rupees to end at 1039.6 Rupees per 360 kgs.
Trading Ideas:
–Mentha Oil trading range for the day is 917-926.4.
–In Sambhal spot market, Mentha oil dropped by -41 Rupees to end at 1039.6 Rupees per 360 kgs.
–Mentha Oil prices remained supported as support seen after India saw a slight in fresh Covid cases, with unlockdown ahead of festival season.
–Prices got support in last few weeks as due to crop failure and low recovery of oil.
–Availability of Mentha oil will be low and demand from industries are expected to improve ahead of winter season.
Courtesy: Kedia Commodities
Source: Comodity Online
