Mentha Oil On MCX Settled Up By 0.35% At 900.9

Mentha oil on MCX settled up by 0.35% at 900.9 on short covering after prices dropped 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.

Prices of mentha oil had risen almost 25% post demonetisation in a month's time because traders in Uttar Pradesh were unwilling to sell their produce in lieu of online payments or cheques. 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. In recent years the production and consumption of synthetic mentha has increased which is impacting the demand of natural mentha.

As on now stock positions of Mentha in MCX accredited warehouses were around 3709 drums which is 36 drums less in comparison to previous day, while in process was 96 drums, which is 12 drums more against the previous day. Mentha oil spot at Sambhal closed at 1016.70 per 1kg. Spot prices was up by Rs.6.80/-.Technically now Menthaoil is getting support at 896.7 and below same could see a test of 892.4 level, And resistance is now likely to be seen at 907.6, a move above could see prices testing 914.2.

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