Commodity Trading Tips for Mentha Oil by KediaCommodity

Ajay Kumar Kedia 9 July 2014

Mentha-Oil Menthaoil settled up 2.18% at 716.5 amid tight supplies against rising demand in the spot market. However, expectations of higher production due to favorable weather conditions during the sowing and growth stages and also due to increase in acreage, capped some gains. Harvesting reports are reported to be proper from conducive weather in UP. Prospects of rains in the coming days could however adversely affect the harvesting and provide some support to the falling market sentiments. In Chandausi sources reported arrivals at 50 Drums(1-drum-180kg), steady as against previous sources arrival. In Sambhal arrivals were reported at 100 Drums(1-drum=180kg), higher by 20 Drums(1-drum=180kg) as against previous day. In Barabanki estimated market supply was at 250 Drums(1-drum-180kg), higher by 50 Drums(1-drum-180kg) from previous trading day. In Bareilly arrivals were reported at 25 Drums(1-drum-180kg), higher by 5 Drums(1-drum-180kg) as compared to previous day. In Rampur sources reported arrivals at 35 Drums(1-drum=180kg), higher by 5 Drums(1-drum=180kg) as against previous day. Markets sources suggested that the total carryover stocks of around 26-28 thousand tonnes have been reported in the major producing states. These were well above the average monthly consumption of around 15-16 thousand months of the next six months. Sources mentioned that mentha oil production in the current year is likely to be around 60 thousand tonnes against the earlier estimates of 52-54 thousand tonnes. Technically market is under short covering as market has witnessed drop in open interest by -3.66% to settled at 6283 while prices up 15.30 rupee, now Menthaoil is getting support at 703.4 and below same could see a test of 690.3 level, And resistance is now likely to be seen at 723.8, a move above could see prices testing 731.1.