Increase In Mentha Oil Futures Likely To Be Capped

Chennai: Upward movement in mentha oil futures is likely to be capped, while spot prices are likely to fall on new arrivals pressurising the market. Mentha oil June contracts on MCX are likely to be range-bound between Rs 500 and Rs 530 a quintal. On MCX, the contract ended at Rs 522 on May 26, while on NCDEX, it closed at Rs 518. Spot prices (Chandausi) ruled at Rs 575.50 a quintal. However, good demand was hopped from exporters from the new crop and arrivals will put pressure on prices in the Barabanki region. The broking services firm said refined soyabean oil prices were hoped to gain on firm overseas market, while guar futures were hoped to move in a narrow range with a positive bias. Refined soyabean oil was quoted at Rs 580 for June contracts on MCX and NCDEX. Copper prices will be driven by fund activity and short-covering seen on May 25, could bring stability into the system that saw prices declining 11 per cent since the correction began two weeks ago. Copper on MCX could take support at Rs 295.6 a kg levels with strong resistance coming in at Rs 307-308.