MCX MENTHA OIL PRICE FALL BY 0.4%

• Mentha oil price fell further by 0.40% to Rs 705.90 per kg in futures trading today as speculators trimmed positions, triggered by low demand from consuming industries against higher supplies from producing belt.
• At the Multi Commodity Exchange, mentha oil for delivery in December shed another Rs 2.80, or 0.40% to Rs 705.90 per kg in business turnover of 149 lots.
• Also, the oil for delivery in January next year contract edged down by Rs 1.40, or 0.19% to Rs 717.30 per kg in 11 lots.
• Mentha oil settled up by 0.61% at 708.7 on increased demand from consuming industries in the spot market. Mentha oil production is expected to fall this year by 30 per cent to 40,000 tonnes from 55,000 tonnes a year ago, with acreage under the commodity declining as farmers sentiment were dampened due to lower prices.
• Technically market is under short covering as market has witnessed drop in open interest by -1.75% to settled at 7975 while prices up 4.3 rupee.
• Now Menthaoil is getting support at 696.6 and below same could see a test of 684.5 level, and resistance is now likely to be seen at 716.5, a move above could see prices testing 724.3.