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Technically Mentha oil market is under fresh buying as market has witnessed gain in open interest by 3.69% to settled at 2922 while prices up 0.4 rupees.
Now Mentha oil is getting support at 932.6 and below same could see a test of 925.8 level, And resistance is now likely to be seen at 943.6, a move above could see prices testing 947.8.
Mentha oil settled flat as arrivals of the new crop, have started in the key wholesale markets of Sambhal and Chandausi in Uttar Pradesh. About 100-120 drums in Sambhal and 70 drums in Chandausi (per day) of mentha oil have been arriving.
Arrivals this season are about 20 days late than normal. As per sources, demand is weak ahead of GST as local traders and mentha consuming industries are avoiding bulk buying. On the supply front, arrivals are more in the major spot market of Uttar Pradesh.
Also from the export front no positive outcome is expected in near future. This year due to favourable climatic conditions and monsoon there is expectation of 15% hike in production of mentha, which is creating pressure on the mentha prices.
The expectation of good production of mentha during the year has boosted the demand for natural mentha. The new crop of mentha oil is being sold at 975 and 1,010 rupees per kg in Chandausi and Sambhal, respectively, down about 50-70 rupees in the last two weeks.
The daily supply could rise to around 400 drums in the next two weeks. Expectations of higher output in 2017 will further dampen the sentiment moving ahead. Mentha output this year is likely to rise by 10-12% to 36,000 tn, as weather remained largely conducive throughout the season. Mentha oil spot at Sambhal closed at 1059.10 per 1kg. Spot prices were up by Rs.14.40/-.
Trading Ideas:
--Mentha Oil trading range for the day is 925.8-947.8.
--Mentha oil spot at Sambhal closed at 1059.10 per 1kg. Spot prices were up by Rs.14.40/-.
--Mentha oil prices settled flat as arrivals of the new crop have started in the key wholesale markets of Sambhal and Chandausi in Uttar Pradesh.
-- As per sources, demand is weak ahead of GST as local traders and mentha consuming industries are avoiding bulk buying.
-- The expectation of good production of mentha during the year has boosted the demand for natural mentha.