Menthaoil May contract dropped Rs 58.3 and settled at Rs 1398.9 due to strong production estimates in the current year along with fresh arrivals in major mandies. Expectations of higher sowing activities this year put pressure on the markets even as low stocks and lower arrivals were reported in the mandis. Traders mentioned that the total production of mentha oil in the current year is estimated at 52000 tonnes against 38000 tonnes that were reported last year. This is mainly due to strong sowing acreage in the current year. Moreover, the recovery of mentha oil at major producing states is estimated at 6-7 kgs per bigha against 4-5 kgs that were reported last year. Traders also stated that fresh arrivals of around 150-200 drum were reported in the major mandies of Sambhal and Barabanki of Uttar Pradesh , while fresh arrivals are likely to gain momentum from the first week of June . The total arrivals stood at 110-125 drums. On 21st May total stock of mentha oil at MCX-monitored warehouses at Chandausi was 1, 26, 219 kg of which 1, 14, 714 kg was physical stock and demat stock was 11, 505 kg. At Barabanki, the total stock was 6, 18, 133 kg of which, physical stock accounted for 5, 75, 306 and demat stock was 42,827 kg. The contract made intraday low of Rs 1398.9 a kg and high of Rs 1438.8 a kg with the volume of 1189 and total open interest for the same contact was at 1200.Now support for the menthol is seen at 1385.6 and below could see a test of 1372.3. Resistance is now likely to be seen at 1425.5, a move above could see prices testing 1452.1.
Mentha oil trading range for the day is 1372.3-1452.1.
Menthaoil spot is at 1520/-.Spot market is down by Rs.80/-.
Mentha oil ended weak due to strong production estimates along with fresh arrivals in major mandies.
Total production of mentha oil in the current year is estimated at 52000 tonnes against 38000 tonnes
The total arrivals of mentha oil stood at 110-125 drums.
- Decision on gas price revision taken under RIL’s coercion: Dasgupta
- Government to pay $8.1 billion fuel subsidy in fourth quarter
- Oil firms falls as government considers export parity pricing model
- Essar Oil to sign $1 billion financing co-operation deal with CDB
- ONGC may sell stakes in deep-water blocks to Shell