Commodity Trading Tips for Mentha Oil by KediaCommodity

Ajay Kumar Kedia 19 June 2014

Mentha-Oil Menthaoil settled down -2.14% at 769 on lower demand from consuming industries in the spot market. Besides, higher arrivals from major producing belts due to favorable weather conditions too put pressure on mentha oil prices. In Barabanki traders reported arrivals at 90 Drums(1-drum-180kg), unchanged as compared to previous day’s arrival. In Chandausi Arrivals were reported at 50 Drums(1-drum-180kg), higher by 30 Drums(1-drum-180kg) from previous day’s arrivals. In Sambhal total arrivals are at 200 Drums(1-drum=180kg), steady as against previous day’s arrival. In Bareilly total arrivals are at 20 Drums(1-drum-180kg), down by 5 Drums(1-drum-180kg) as against previous day. As per the market sources, the total sowing acreage of mentha oil is expected to decline by 20-25% in the current year on the account of delayed harvesting mustard and wheat crop in major areas of Uttar Pradesh and Punjab coupled with poor realization rate from mentha oil. Sources added that the total production of mentha oil in the current year is likely to be around 35-36 thousand tonnes against the previous year of 50 thousand tonnes. The prices will also be well supported by strong export demand in local mandies. Sources mentioned that the total exports of mentha oil for the full year April 1, 2013 to March 31,2014 are likely to surpass the previous record of 20,500 tonne , ie. reported in 2008. Technically market is under long liquidation as market has witnessed drop in open interest by -0.05% to settled at 4119 while prices down -17.80 rupee, now Menthaoil is getting support at 762.2 and below same could see a test of 756.8 level, And resistance is now likely to be seen at 778.1, a move above could see prices testing 788.6.