Breaking News
0

Mentha Oil Under Short Covering; Support Seen At 1673.4

By CommodityOnline (Commodity Online)CommoditiesMar 15, 2019 14:10
in.investing.com/analysis/mentha-oil-under-short-covering-support-seen-at-16734-200208282
Mentha Oil Under Short Covering; Support Seen At 1673.4
By CommodityOnline (Commodity Online)   |  Mar 15, 2019 14:10
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Technically Mentha Oil market is under short covering as market has witnessed drop in open interest by 3.01% to settled at 837 while prices up 7.4 rupees.

Now MCX Mentha Oil is getting support at 1673.4 and below same could see a test of 1654.5 level, And resistance is now likely to be seen at 1705, a move above could see prices testing 1717.7.

Mentha Oil on MCX settled up by 0.44% at 1692.3 on short covering after prices dropped due to low demand at major physical centers. Prices also seen pressure earlier 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.

The surge in output is likely due to buoyancy in planting intentions, not only in the traditional pockets of Uttar Pradesh and Bihar in recent days, but also in Madhya Pradesh. Mentha sowing may witness a huge jump this year because of high returns farmers experienced the whole of last year. Production of mentha oil is expected to rise to 48,000-50,000 tn in 2019 from 33,000-35,000 tn last year.

This year, sowing of the crop started towards the end of last month, a couple of weeks later than usual due to extended cold weather in all major growing regions. Official data on mentha, with respect to sowing or production and export, is not available as trade in the commodity is tightly controlled by a few.

This season, the area under mint is expected to be 250,000-265,000 ha. Speculation that German major BASF SE (DE:BASFN) has re-started deliveries of synthetic mentha oil will also be a deterrent to prices. Mentha oil spot at Sambhal closed at 1756.30 per 1kg. Spot prices was down by Rs.8.80/-.

Trading Ideas:
--Mentha Oil trading range for the day is 1654.5-1717.7.
--Mentha Oil spot at Sambhal closed at 1756.30 per 1kg. Spot prices was down by Rs.8.80/-.
--Mentha Oil gained on short covering after prices dropped due to low demand at major physical centers.
--Prices also seen pressure earlier amid expectations of higher acreage under mint in 2019 due to lucrative prices throughout last year.
--The surge in output is likely due to buoyancy in planting intentions, not only in the traditional pockets of Uttar Pradesh and Bihar in recent days.

Mentha Oil Under Short Covering; Support Seen At 1673.4
 
Mentha Oil Under Short Covering; Support Seen At 1673.4

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email