Mentha Oil Will Remain High

Mentha Oil December futures though traded higher during the day but at the close it drifted lower and eventually prices ended the day with a marginal gain of 0.35% from its previous close. We could see prices movement at the futures market as the spot also traded higher last day. Spot prices at the Sambhal and Chandausi mandis witnessed a positive trend during yesterday’s trading session. Across Sambhal and Chandausi regions, the mentha oil prices traded at Rs 980 per kg that is Rs 8 per kg higher compared to the previous spot prices. In the meantime, spot price at the Barabanki mandis quoted at Rs 946 to 956 per kg.

For the past several sessions, we have been seeing that Mentha prices are holding up at the lower levels so prices are failing to decline much. This can be linked to slight winter demand, which is slowly seen in the market. According to seasonality, mentha prices generally tend to move higher during winter so the same trend is now felt on the market. Meanwhile, farmers are reluctant to bring their produce to market that is also making a supply tightness situation and is eventually helping prices to remain higher. On the other hand, the lower export demand is holding prices lower. As far as today is concerned, we continue to hold a bullish approach on mentha prices hence suggesting buying at lower levels. Finally, by looking at the price, volume and open interests’ performance, we believe volume indicator could be the important point to watch. If prices moves up today along with higher volumes then possibly mentha prices may remain higher in the near term.

COMMODITY INTRADAY TRADING TIPS

BUY MENTHA OIL MCX DEC ABOVE 877 SL 870 TGT 885

SELL CRUDE OIL MCX DEC BELOW 5871 SL 5891 TGT 5856-5836

ECONOMIC INDICATORS:

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