MCX Mentha Oil likely to move in a range of 967 8 1014 8

Technically Mentha Oil market is under fresh buying as market has witnessed gain in open interest by 2.16% to settled at 142 while prices up 6.6 rupees.

Now MCX Mentha Oil is getting support at 978.6 and below same could see a test of 967.8 levels, and resistance is now likely to be seen at 1002.1, a move above could see prices testing 1014.8.

Mentha Oil yesterday settled up by 0.67% at 989.3 as prices are on attractive levels at this movement as prices are fallen since the start of the year.

Unlock down will support demand for industry as Mentha oil is most used in pharma industry, cosmetics industry, FMCG sector as well as confectionery products.

Due to prevailing low prices for natural mentha companies using synthetic menthol will rely on natural mentha this year.New demand for Mentha products can be seen as produce are also used in pain relieving medication, cough syrup, soap and sanitizer.

These days, due to the increase of pests on Mentha plants, the possibility of oil shortage has increased. In recent session prices remained under pressure as production this year is up by 40% compare with last year.

Sharp drop seen suddenly as arrival has increased, farmers are constantly bringing their crops to the mandis as this year farmers had a bumper yield. Mentha crop has been cultivated on a large scale due to reduced production of kharif crop.

There were expectations of higher area under cultivation for crop year 2020-21. According to market sources, the yields could be between 52,000-56,000 tonnes this year, up by 40 per cent .

Trading Ideas:
--Mentha Oil trading range for the day is 967.8-1014.8.
--In Sambhal spot market, Mentha oil remains unchanged at by 0 Rupees to end at 1119.2 Rupees per 360 kgs.
--Mentha Oil gains as prices are on attractive levels at this movement as prices are fallen since the start of the year.
--These days, due to the increase of pests on Mentha plants, the possibility of oil shortage has increased.
--Unlock down will support demand for industry as Mentha oil is most used in pharma, cosmetics, FMCG sector as well as confectionery products.

Courtesy: Kedia Commodities