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Mentha oil on MCX settled up by 4% at 1586.9

Posted on Nov 08, 2017 by kc_admin

Mentha oil on MCX settled up by 4% at 1586.9 due to pick up in demand from consuming industries in the domestic spot market. Furthermore, tight stocks position following restricted arrivals from major producing belts of Chandausi in Uttar Pradesh also supported mentha oil prices uptrend. As per sources, tight stock position which has been followed by fall in arrivals from the major producing belts of Chandausi in Uttar Pradesh has given support to the uptrend in prices. Speculators have widened their positions because of pick-up in demand from consuming industries in the spot market against restricted supplies. As per the reports the global demand of essential oil will increase in the coming years. This will boost mentha oil demand, mainly from medicines, health products, cosmetics as well as food and beverages. From export front, the demand for mentha oil will emerge from the European Union, the UK, Japan, the UK, China and Singapore. Also the limited supply from the major producing regions of Uttar Pradesh is giving support to mentha oil prices. Stock positions of mentha in MCX accredited warehouses were around 9388 drums which is same in comparison to the previous day, while in process were 396 drums, which is 12 drums more against the previous day. Mentha oil spot at Sambhal closed at 1741.60 per 1kg. Spot prices was up by Rs.61.60/-.Technically market is under short covering as market has witnessed drop in open interest by -8.28% to settled at 2681 while prices up 61 rupees, now Menthaoil is getting support at 1548.5 and below same could see a test of 1510.1 level, And resistance is now likely to be seen at 1606.1, a move above could see prices testing 1625.3.

Trading Ideas:

#             Menthaoil trading range for the day is 1510.1-1625.3.

#             Mentha oil spot at Sambhal closed at 1741.60 per 1kg. Spot prices was up by Rs.61.60/-.

#             Mentha oil gained due to pick up in demand from consuming industries in the domestic spot market.

#             Furthermore, tight stocks position following restricted arrivals from major producing belts of Chandausi in Uttar Pradesh also supported mentha oil prices.

#             Stock positions of mentha in MCX accredited warehouses were around 9388 drums which is same in comparison to the previous day